The Frenchman who has won the competition three times in a row as manager of Los Blancos, however, insisted they can be proud of their achievement this term.
Madrid were trailing 2-1 from the first leg at the Santiago Bernabeu and went behind at the Etihad to a Raheem Sterling goal.
Karim Benzema headed in Rodrygo’s cross to make it 1-1, but Gabriel Jesus pounced on a Raphael Varane’s error to slot in the winner.
“We can’t be happy obviously, we have lost the game and we are out.
“We are proud of what we achieved this season, this is football. We lost to a good team and have to accept it. We had our chances to score.
“95% of what we achieved this season has been excellent. We have to accept this.We need to be very proud of what we have achieved,” Zidane told BT Sport.
