Palmeiras qualified to the 1968 Copa Libertadores as the 1967 Taça Brasil champions, defeating Náutico 2-0 in a playoff played at the Estádio do Maracanã.

Estudiantes was drawn into Group 1 alongside Independiente, winners of the 1964 and 1965 editions of this tournament, and Colombian sides Deportivo Cali and Millonarios.

The Pincharatas surprisingly cruised to the second round, assuring qualification, with a match to spare, after a run of 4 consecutive victories and a tie.

A 3-0 victory at home against Deportivo Cali was followed by a 0-0 draw vs Millonarios, which assured Estudiantes place into the second round.

Like Estudiatnes, Palmeiras started their campaign well with a 5-victory streak that assured them of a place in the second round, with Tupãzinho, Ademir and Servílio being key players for the Verdão (tying 0-0 in their last, meaningless match against Náutico).

Estudiantes won the match 3−0 with goals from Roberto Perfumo and a brace from the emerging figure Juan Ramón Verón.

Since the series was tied on points (2-2 each), a playoff in Buenos Aires was contested; it ended in a 1-1 draw with Juan Carlos Cárdenas and Verón scoring for each of their clubs.

This time, Palmeiras started out well winning the first leg, played at home in São Paulo, with a 1−0 with the goal coming from Tupãzinho.