City were caught on a very rare off day by Erik ten Hag’s Reds who won the derby 2-1 at Wembley.
Both United goals came in the first half at the national stadium, via Alejandro Garnacho and Kobbie Mainoo.
Garnacho bagged the first on 30 minutes with the simplest of finishes after a mix-up at the back by Josko Gvardiol and Stefan Ortega Moreno.
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Mainoo doubled the lead on 39 minutes for our neighbours as the England midfielder blasted home after a pass into him from Bruno Fernandes.
Hope was raised for the Blues when Jeremy Doku pulled one back after a fine strike from outside the box on 87 minutes.
But Pep Guardiola’s Premier League winners couldn’t get the second to take the match into extra-time.
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