Goalkeeper Izzo saved three City penalties and scored one himself to secure his side a dramatic elimination final win, mobbed by teammates as the Victory contingent of the 21,358 in attendance at AAMI Park on Sunday night exploded into raptures after he denied James Jeggo's penalty to win it.
The 28-year-old had previously saved efforts from Terry Antonis and Callum Talbot, with Roderick Miranda and Damien Da Silva also converting their spot kicks for Victory and sparing the retiring Leigh Broxham any blushes for missing his attempt.
Paul Izzo scores with his penalty attempt in the shootout. (Will Murray/AAP PHOTOS)
Tony Popovic's side will now host the Phoenix in the first of a two-legged header at AAMI Park next Sunday evening, with Sydney FC to host the Central Coast Mariners on Friday evening.
Leading after Samuel Souprayen's 29th-minute header and Victory not producing a shot on target since the 37th-minute dismissal of Zinedine Machach, City spent much of the game laying siege to the Victory penalty area and should have had the game wrapped up well inside regular time.
But with his side somehow still alive, a desperate ball lofted down the left by Victory skipper Miranda found the run of Kasey Bos, with the younger brother of former City standout Jordy sending in a cross that found an open Nishan Velupillay for an 87th minute equaliser.
Victory then thought they had a penalty in the third minute of stoppage time after Mat Leckie deflected a Da Silva headed attempt with a trailing arm, only for the VAR to determine that the French defender had been offside by centimetres when the ball was sent in.
City had had a 17th-minute Tolgay Arslan penalty saved by Izzo and used their one-player advantage to outshoot Victory 22 shots to nine during regular time but, instead, were now being forced to extra time.
Izzo saves a penalty from Tolgay Arslan in the first half. (Will Murray/AAP PHOTOS)
They brought renewed pressure across the added football, with Natel and Max Caputo both going close, but Izzo remained immense; ending the 120 minutes by saving eight of City's 30 total attempts and ensuring the game went to a shootout where he could quite literally do it all.