Real Madrid head coach Carlo Ancelotti warned never to consider his team "dead" because "Madrid never dies" following a dramatic Champions League quarterfinals win over holders Manchester City on Wednesday.

The 14-time winners of the competition went into second leg tie at the Etihad tied 3-3 on aggregate, and were again dominated in terms of possession and other statistics including passes and shots during another stalemate which this time finished 1-1.

Even after taking off attacking players such as Vinicius Jr. and Rodrygo, however, Los Blancos held on for dear life through extra time and then won a tense penalty shootout 4-3 with defender Antonio Rudiger firing the winning kick past Ederson.

Speaking to Movistar following the historic win, which set up a semifinal meeting with Bayern Munich, Ancelotti said that his men "started well" but then "started to suffer, to fight, to sacrifice" after taking a 12-minute lead through Rodrygo.

"We've dropped too deep with the block, City had more control, although they always have more control. I think we defended very, very well," he added.

On an excellent exercise in survival his team carried out, Ancelotti said that such matches bring out "something that nobody thought we were going to have".

"In the shootout we were very convinced that we would qualify. Obviously I really like it when I see a team that sacrifices and fights, as well as the quality... Winning here could only be done this way," he said of the Etihad.

Ex-FC Barcelona manager and current City coach Pep Guardiola congratulated Ancelotti on the win and "wished us luck" the Italian revealed.

"He was a gentleman, as he has always been and as this club is - a club of gentlemen," Ancelotti said.

A Sunday meeting with the club of Guardiola's life in El Clasico now awaits at the Bernabeu, and Ancelotti insisted that his troops "don't have any physical problems" and has time to recover until the weekend.

"We sleep calmly here to recover and realise that we have done something very good. Everyone thought we were dead, but never consider Madrid dead because Madrid never dies," he warned defiantly.