Substitute Hercules netted late on to seal their win, while a frustrated Inter hit the woodwork twice through Lautaro Martinez and Federico Dimarco.

The Rio de Janeiro outfit become the second Brazilian side to make the last eight after Palmeiras had already sealed their quarter-final spot.

"We knew they were not going to be easy opponents. Less than a month ago they were playing the Champions League final, but we played really well," said 40-year-old 'Flu' captain Thiago Silva, once of Paris Saint-Germain and Chelsea.

It is the latest victory for a Brazilian team against prestigious European opposition at the tournament in the United States, after Botafogo defeated PSG and Flamengo got the better of Chelsea in the group stage.

"This is a very important victory for our fans, for all of Brazil, for my country, for South America," said Jhon Arias, the lively Colombian winger who was named man of the match.

Inter, who were thrashed 5-0 by PSG in the Champions League final, appointed Cristian Chivu to replace the departing Inzaghi ahead of the tournament.

They did not fully convince during the group stage despite topping their section and a furious Martinez criticised some of his team-mates after the game.

"I want to fight for the major trophies, (so) anyone who wants to stay at Inter, fine, let's fight, but anyone who doesn't want to stay can leave," said Inter's captain.

"We need players who want to be here. We're wearing an important shirt... we need a top-level mentality, or please leave."