Israeli forward Yonatan Cohen proved the hero as Melbourne City claimed the bragging rights over crosstown rivals Melbourne Victory with a 1-0 victory to lift the A-League title on Saturday.

In front of a sell-out crowd of 29,902 at AAMI Park, Cohen scored in the 10th minute before the disciplined City shut down Victory with gritty defending in a nerve-jangling second-half.

City claimed their second title having reached the grand final for the fifth time in the last six years.

"It's amazing to do it against our rivals," City defender Nathaniel Atkinson said.

"We got that early goal and we knew with our defence that we could keep a clean sheet."

It was a bitter disappointment for Victory, who lost at the final hurdle for the second straight season to once again fall short of equalling Sydney FC's record of five titles.

"It's really tough to be in this position two years in a row," Victory defender Roderick Miranda said.

"We had chances in the beginning, but in the second-half they defended really well."

The powerhouse clubs had never previously met in a grand final since the A-League replaced the National Soccer League in 2005 as Australia's top football competition.

The blockbuster decider was a tonic for a competition that has been mired by financial strain and declining popularity since the Covid-19 pandemic.

A heavy police presence was visible before the game as opposing supporters marched through the streets and set off flares, but there were no reports of violence.

Amid a febrile atmosphere inside the stadium, Victory made the early running with striker Daniel Arzani providing headaches for City's defence.

But City, entering with an unbeaten eight-game streak, pounced against the run of play on their first foray forward.

Max Caputo's bullet rifled off the upright and straight to Israel international Cohen, who hammered the third fastest goal in A-League grand final history.

City continued to threaten on the counterattack and a powerful header from Mathew Leckie was on target until a desperate dive from goalkeeper Jack Duncan came to Victory's rescue.

The tireless Arzani tried to will an equaliser for Victory, but he had little room to weave his silky skills against the swarming City defence.

Cohen opened the second-half with a wickedly curling strike from the edge of the box only for Duncan to produce another outstanding full-stretched save.

Tensions flared between the teams as City missed several golden opportunities to end Victory's resistance.

But their steely defence held up as City erupted in jubilation when the whistle sounded.