Milan twice hit back to equalise but were sent tail-spinning towards a crisis after their defender Ricardo Rodríguez hauled down Danilo D’Ambrosio at a corner and Icardi converted his ninth league goal of the season.
Luciano Spalletti’s team remain unbeaten this season and move above champions Juventus up to second in the Serie A table, setting up a battle for top place against Napoli next weekend.
Inter took control of the derby early on. Borja Valero came infield with some clever footwork after 13 minutes and found Candreva, who unleashed a right-footed shot against the top of the crossbar.
Milan competed well enough but the clearer chances continued to fall Inter’s way – Miranda getting the jump on Rodriguez from Ivan Perisic’s cross to head just wide.
Spalletti’s men were rewarded for their more incisive play when Leonardo Bonucci was unable to cut out Candreva’s magnificent low cross from the right and Icardi stole in front of Mateo Musacchio to finish with aplomb.
Icardi’s instinctive finish from Antonio Candreva’s pinpoint 28th-minute cross preceded a passage of play before the interval when a Milan side still bedding in after their frantic close season in the transfer market appeared increasingly overmatched.
But Vincenzo Montella’s decision to bring teenage forward Patrick Cutrone on for Franck Kessie at the break changed the game as Spalletti tried to sit on a the one-goal lead. A disastrous decision.
The Rossoneri pulled themselves level when Suso stylishly picked out the bottom corner from long range.
Inter unexpectedly found themselves on the ropes and were indebted to Samir Handanovic’s stunning reaction save from Giacomo Bonaventura before Icardi started and ended a 63rd-minute counter-attack, crowning it with a brilliant volley.
Matias Vecino thudded wide as Inter looked to hit back but Handanovic’s incredible reactions to thwart Bonaventura at close quarters confirmed Milan’s position in the ascendancy.
Icardi had other ideas, stealing possession on halfway and powering forward to feed Perisic, who skipped past Musacchio and saw his cross converted with a masterful scissor-kick.
Credit to Milan as they kept fighting and ‘in the 81st minute they drew level again when Bonaventura’s shot was turned into his goal by an unlucky Handanovic.
But this breath taking derby had one more twist in it, when Ricardo Rodriguez, who almost signed for Inter this summer, pulled down Eder at a corner, Icardi did was Dybabla was unable to do on Saturday and that was score a decisive penalty kick in the dying minutes to decide a match.
What did you think of the Derby and Inter’s performance?