African champions Al Ahly shocked Brazilian giants Palmeiras to win the third-place play-off of the Club World Cup in a penalty shoot-out on Thursday.

After a goalless 90 minutes, the game went straight to penalties and Al Ahly captain Mohamed El-Shenawy saved the final spot-kick from former Juventus midfielder Felipe Melo to seal a 3-2 shoot-out victory.

"It would have been better to play in the final, but you can see how our performance showed even the doubters how we can play," said El-Shenawy.

It was a bitter defeat for South American champions Palmeiras, who won the Copa Libertadores at the end of January by beating Santos 1-0 in the final.

"Defeating the CONMEBOL champions is a milestone," said Al Ahly's South African coach Pitso Mosimane.

"We want to thank everybody... even the groundsman who cut the grass. It's a collective effort."

European champions Bayern Munich take on Mexico's Tigres in the final at Al Rayyan, near Doha, later Thursday.

Egyptian side Al Ahly lost 2-0 to Bayern in Monday's semi-final, thanks to two Robert Lewandowski goals, while Palmeiras lost their semi-final 1-0 to Tigres.