Real Madrid have won their second International Champions Cup of the summer by overcoming AC Milan on penalties in Shanghai this evening.

The first half was a slow-burner as both sides struggled to create much. The best chances fell Milan's way, with Luca Antonelli and M'Baye Niang both denied after surging runs into the Madrid box.

Madrid, who won the Australian leg of the ICC, barely troubled Milan in the opening period, but they improved after half time and Toni Kroos and Cristiano Ronaldo both went close soon after the interval.

Milan new boy Carlos Bacca was brought on at the break and he squandered the best chance of the match with 10 minutes to go when he raced through on goal and blasted it straight at Kiko Casilla.

No goals after 90 minutes meant a penalty shootout, and it was Madrid who edged it to win the trophy.

Bacca was the first to miss in the shootout and that gave Kroos the chance to win it for Madrid, but his penalty was saved by 16-year-old Milan keeper Gianluigi Donnamurra, meaning that sudden death was required.

The remaining outfield players all scored their penalties to leave goalkeepers Casilla and Donnamurra. Casilla blasted home his spot kick to pile the pressure on his young opposite number and the Italian could not beat his counterpart from 12 yards.