AC Milan tumbled out of the Italian Cup when they were beaten 3-0 by quarterfinal opponents Palermo on Tuesday.

Milan's 3-1 elimination on aggregate was their second disappointment in four days following a 1-1 draw with Sam pdoria at the weekend that left them 12 points behind leaders luventusinSerie A

Milan, fielding a strong side fronted by Alberto Gilardino with Kaka in support, had an early chance (u take the lead when the ball broke loose on the edge of the area to Kaka but die Brazilian playmaker failed to getanypoweronhisshot.

There was nothing wrong, however, with the shot unleashed by M i nano Gonzalez from 20 metres our that curled into the top of Milan's net in the 10th minute.

Palermo striker Andrea Caraccinlo grabbed the home side’s second goal eight minutes later, running on to Eugenio Corini's through ball before finishing coolly into rhe bottom corner ofthe net.

At 2-0 down, Milan belatedly began to press forward, bur five minutes into the second half Palermo struck again, this time on the break, when Gonzalez raced into rhe area, rounded Kalac and slotted homehissecondgoalofthenlght.

Milan coach Carlo Ancelotti reacted by sending on Filippo Inzaghi. Andrea Pirlo andSerginho in an attempt to cluse the gap.

The closest they came was in the 86th minute, when Palermo keeper Mariano Andujar saved twice in quicksuccession to prevent Clarence Seedorf and then Kaka pulling one back.