Japan's Inoue - dubbed 'The Monster' for his big punching - faced vulnerable moments and was cut after two rounds.
He looked close to stopping Filipino Donaire in round five but came under pressure himself in eight, only to drop his rival with a body shot in the 11th.
Donaire rose but lost unanimously 116-111 117-109 114-113 on the scorecards.
The beaten man - himself a world champion at four weights - deserved to see out the 12 rounds after contributing so much to an absorbing affair at the Super Arena in Saitama, Japan.
The 36-year-old ultimately gave up his WBA world title to Japan's Inoue, who already held the IBF belt in the 118lb division.
The pair embraced on their knees in the corner of the ring moments after the bell after serving up one of the fights of the year, before Inoue received the Muhammad Ali Trophy given to the World Boxing Super Series winner.
"Donaire was a very strong opponent," said Inoue, 26. "This is the first cut I have had in my career. I had a double vision since the second round but I am victorious and so proud of myself."
He looked close to stopping Filipino Donaire in round five but came under pressure himself in eight, only to drop his rival with a body shot in the 11th.
Donaire rose but lost unanimously 116-111 117-109 114-113 on the scorecards.
What a round, what a fight #InoueDonaire 👊🏼 pic.twitter.com/MBZF9sOOTL
— Dan Frost (@DannyBoyFrost) November 7, 2019
The beaten man - himself a world champion at four weights - deserved to see out the 12 rounds after contributing so much to an absorbing affair at the Super Arena in Saitama, Japan.
The 36-year-old ultimately gave up his WBA world title to Japan's Inoue, who already held the IBF belt in the 118lb division.
The pair embraced on their knees in the corner of the ring moments after the bell after serving up one of the fights of the year, before Inoue received the Muhammad Ali Trophy given to the World Boxing Super Series winner.
"Donaire was a very strong opponent," said Inoue, 26. "This is the first cut I have had in my career. I had a double vision since the second round but I am victorious and so proud of myself."
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