AC Milan have been knocked out of the Coppa Italia after losing 2-1 to Udinese at the San Siro.

The Rossoneri took the lead in the seventh minute, Azzurri international Mario Balotelli scoring from close range after a pinpoint cross from Kaka.

Luis Muriel wasted a golden chance for the visitors midway through the first half, slicing his effort wide after a good run.

Five minutes before the break, Urby Emanuelson clattered into Silvan Widmer in the Milan box to win a penalty, and Muriel, offered the chance to redeem himself from the spot, fired the ball into the bottom left corner to make it 1-1.

The second half proved to be very dynamic as both sides pressed for a winner, but the decisive goal fell to Udinese, as Nicolas Lopez, having just come off the bench, fired a shot from 30 yards to beat Christian Abbiati.

Udinese now go on to the semi-finals of the Coppa Italia.