The victory sends Gustavo Alfaro's side into the next round, where they will face France, while Germany's tournament ends at the first knockout hurdle after suffering the first World Cup penalty shootout defeat in the nation's history.

Paraguay struck first late in the opening half when Julio Enciso rose unmarked to head Matias Galarza's cross beyond Manuel Neuer after Germany failed to deal with a recycled corner.

Julian Nagelsmann's side struggled to create clear openings before the interval but emerged with greater urgency after the restart.

Their pressure was rewarded in the 54th minute when Florian Wirtz delivered an inviting cross and Kai Havertz guided a superb header into the far corner for his third goal of the tournament.

Germany dominated the remainder of normal time and thought they had completed the turnaround in extra time when Jonathan Tah headed home from a corner, only for the goal to be ruled out following a VAR review for a foul on Paraguay goalkeeper Orlando Gill.

Gill continued to frustrate Germany with a series of important saves as Paraguay withstood sustained pressure to force penalties.

The shootout swung dramatically between the two sides.

Gill denied Havertz before Nadiem Amiri restored Germany's hopes. Fabian Balbuena then missed the chance to put Paraguay in control, only for Nick Woltemade to see his effort saved moments later.

After Jose Canale converted to move Paraguay within one kick of victory, Jonathan Tah blazed Germany's final penalty over the crossbar, allowing Canale's strike to stand as the decisive moment.

The result marks another disappointing World Cup campaign for Germany, whose wait for a first knockout victory since lifting the trophy in 2014 goes on.

For Paraguay, however, it is a famous night that ranks among the greatest in the nation's football history as they march into the Round of 16 after eliminating one of the tournament favourites.

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