European champions Milan now have 64 points, seven more than second-placed Roma and nine ahead of Juventus with nine games remaining.
Dutch international Clarence Seedorf scored twice in the second half as Milan added to Juve's misery following their exit from the Champions League in midweek.
Milan coach Carlo Ancelotti said there was no doubt his side were now closing in on his first Serie A title as a coach.
"We are certainly much closer now to the 'scudetto'," said Ancelotti. "We are on the downhill stretch now but the team will keep themselves tough right until the end."
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European Footballer of the Year Pavel Nedved, again looking well below his best, headed wide from a promising position in the 11th minute as Juve took the game to the team who had beaten them on penalties in last season's Champions League final.
Milan responded with swift counter-attacking as Seedorf fed Brazilian Kaka, who forced Juve keeper Gianluigi Buffon into action with a stinging shot.
It was end-to-end football with Juve certainly playing their part.
But the inspired Seedorf then created the opening goal for Milan with a cross from deep on the right flank, picking out Andriy Shevchenko who powered a header past Buffon and changed the course of the game.
Alessio Tacchinardi wasted another opportunity for Juve as he fired wide after being set up by a smart pull-back from Nedved, but Juve's fragile defence was twice opened up only for Shevchenko to miss the target on both occasions.
Filippo Inzaghi should have made it 2-0 nine minutes after the restart when Kaka put him through but the Italy striker, after rounding Buffon, then shot poorly into the side netting.
BEYOND REACH
Seedorf's 63rd-minute deflected strike and his sweetly-struck shot 12 minutes later, after a break down the right by Cafu who found the Dutchman unmarked on the edge of the Juve area, put the game beyond Juve's reach.
Juve defender Ciro Ferrara pulled one back in the 81st minute with a volley from a Mauro Camoranesi corner and Camoranesi gave Milan a scare with a dipping shot that was just over the bar, but it was too late for a revival.
Roma had scored 14 goals while disposing of Inter Milan, Parma and Siena in their last three matches but lacked their usual fluency against southern strugglers Reggina.
They dominated possession in the first half but the closest they came to scoring was a 12th-minute Francesco Totti free kick that keeper Emanuele Belardi punched off the line.
With their players pushed forward in search of a goal, Roma were exposed to counter attacks and nearly fell behind just after the half hour when a superb solo run by striker David Di Michele ended in a shot that keeper Ivan Pelizzoli did well to save.
Di Michele came even closer to giving Reggina the lead when he hit the crossbar in the 55th minute.
Fourth-placed Lazio seemed to be cruising to victory after going 2-0 up in the first six minutes of their game against Udinese thanks to goals from Roberto Muzzi and Simone Inzaghi.
But goals from former Lazio midfielder Lucas Castroman and an injury-time header from Vincenzo Iaquinta gave Udinese a point.
Lazio stay in fourth place though as their rivals for Champions League qualification, Parma, were held to a 2-2 draw against Brescia.
A 74th-minute goal from Roberto Baggio, his 200th Serie A strike of his career, gave Brescia a share of the spoils.
At the San Siro stadium, seventh-placed Inter Milan ended a run of four straight defeats when they drew 0-0 with Chievo Verona.
