Bayern Munich are edging closer to an Audi Cup final against Real Madrid, as they lead AC Milan 1-0 at half time.

Munich went close after just eight minutes, but Douglas Costa's well-executed free kick cleared the bar by inches.

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The Bundesliga side looked most comfortable in possession in the half, and they broke the deadlock midway through as Juan Bernat cut inside his marker before finding the back of the net with a deflected effort.

Munich almost doubled their lead as Costa's cross was nudged onto the post by Pierre Hojbjerg.

Costa went close again as he used his pace to work himself into a shooting position, but he blazed the ball over, before a looping header from Arturo Vidal hit the crossbar.

Milan offered little going forward, despite new signings Carlos Bacca and Luiz Adrianio starting in attack.