Japanese side Kashima Antlers overcame Atletico Nacional on Wednesday to make the final of the prestigious tournament and they have been joined by European champions Real Madrid, who overcame America courtesy of goals from Karim Benzema and Cristiano Ronaldo.
Experienced Mexican international Paul Aguilar was an injury doubt ahead of the match, but the full-back was named in the America XI. Meanwhile, Silvio Romero, who scored twice in the semi-final against Jeonbuk Motors, kept his spot in the final third alongside Oribe Peralta.
As for Real Madrid, key centre-backs Pepe and Sergio Ramos both missed out through injury, which meant a start for Nacho alongside Raphael Varane, while Lucas Vazquez and Casemiro were also handed starting berths.
It was the Spanish giants that dominated the possession in the early exchanges, but aside from a long-range Vazquez attempt, which cleared the crossbar, there was not too much of note in the opening 10 minutes of football.
Ronaldo also had a pop from distance in the 11th minute as Los Blancos looked for the early breakthrough, before experienced Mexican international Peralta missed the target for America down the other end after a smart pick-out from William da Silva.
Da Silva had a strike of his own in the 22nd minute as America continued to impress, but Keylor Navas was on hand to make the save. Real Madrid, meanwhile, again came close in the 26th minute when Ronaldo met a whipped cross from Vazquez, only to see the ball strike the post from close range.
Los Blancos did have the ball in the back of the America net 12 minutes before the interval when Benzema converted from close range, but the Frenchman was ruled offside after Ronaldo's strike had been palmed into the box by Moises Munoz.
Da Silva remained America's biggest threat in the first period and again tested Navas with a long-range strike in the 37th minute, but it was Real Madrid that took a one-goal lead into the break after Benzema, who had been set free by a Toni Kroos pass, found the top corner with an impressive finish in the second minute of added time.
Benzema might have had a second early in the second period when Kroos found the Frenchman with a free kick, but the striker's header was over the crossbar during what was a strong spell for Real Madrid.
Jose Guerrero's introduction in the 54th minute saw America change to a more attacking system, and the Mexican outfit started to take the game to Real Madrid during an end-to-end period of the match in Yokohama.
Ronaldo had a golden chance to double Real Madrid's lead just before the hour after a smart pick-out from Vazquez, but the Portuguese's powerful effort was somehow kept out by a brilliant save from Munoz.
America continued to threaten, meanwhile, and Navas had to be alert to stop a dangerous Rubens Sambueza free kick from finding the back of the net after Carlos Quintero had been thrown on for the Mexican giants in a bid to level the scores.
In the 66th minute, Ronaldo had another clear-cut opportunity after a super Vazquez cross found the attacker unmarked at the far post, but Benzema jumped just in front of his teammate and the Portuguese could only head back into the America box.
Luka Modric was next to come close for the Spanish giants after Vasquez had found the Croatian on the edge of the America box, but Munoz was on hand to make another smart save as it remained 1-0 entering the final 15 minutes of normal time.
America pressed for a leveller in the latter stages as they looked to take the semi-final into extra time, but Real Madrid, who last won the Club World Cup in 2014, scored a second in the 93rd minute when Ronaldo beat the offside trap and slipped the ball under the onrushing Munoz.