Los Aurinegros maintained their composure to beat the Uruguayan champions 6-5 on penalties.
Penarol defeated crosstown rivals Nacional 6-5 in a penalty shoot-out in the first 'clasico' of the Uruguayan calendar, to reach the final of the Copa Bimbo where they will meet Palestino of Chile.

Nacional, who are coached by Argentine Marcelo Gallardo, fielded a relatively young side, compared to that of Penarol's, who fielded a full-strength side, including recent signings Fabian Estoyanoff and Luis Aguiar.

In front of 40,000 fans at the Centenario stadium in Montevideo, Nacional dominated their opponents for much of the first half, but they couldn't take advantage of the many goal-scoring opportunities which they created.

They were made to pay for their lack of finishing, when in the 24th minute Estoyanoff sent a sublime back-heel pass to Sebastian Cristoforo, who put Penarol ahead with a powerful finish.

Nacional pushed forward in numbers immediately after conceding the goal, and were awarded for their persistence as in the 33rd minute they earned a penalty kick for a foul in the area. Protests from a furious Penarol ended up with the dismissals of a player from either sides, with Penarol defender Carlos Valdez and Nacional midfielder Mathias Abero.

1.97 metre-tall striker Joaquin Boghossian stepped up to the spot and made no mistake with a cool finish to justify Nacional's dominance.

In the second period, Nacional continued to maintain possession between themselves and looked dangerous each time they moved to the attack, particularly down both sets of flanks.

But with no goals in the second half, the game was decided by a penalty shoot-out, which went the way of Penarol 6-5. The hero of the shoot-out was experienced Penarol goalkeeper Fabian Carini, who not only scored from the spot, but saved the crucial spot-kick.

Penarol will meet Palestino in the final of the competition, after the Chileans beat Universidad San Martin de Porres of Peru 5-4 on penalties after both sides were locked at 1-1 over ninety minutes.