Colombia scored a 97th-minute winner through a Manuela Vanegas header to snatch a dramatic 2-1 victory over Germany and stand on the cusp of the Women's World Cup last 16 on Sunday.

Skipper Alexandra Popp thought she had rescued a point for Germany as she held her nerve to score from the spot on 89 minutes.

But in an incredible finish to a pulsating clash, Vanegas popped up deep into stoppage time for all three points with a close-range header.

It came after Linda Caicedo scored one of the goals of the tournament in front of 40,000 fans in Sydney near the start of the second half, but that was just the beginning of the drama.

Their victory left Colombia top of Group H with a perfect six points. Germany and Morocco have three each and all to play for.

South Korea are still just about alive on zero points.

Germany face the Koreans in the last round of matches while Colombia are up against Morocco.

Singing and dancing Colombian fans vastly outnumbered German supporters in a raucous crowd at Sydney Football Stadium.

Loud boos and whistles went up each time Germany had the ball, and they had plenty of it in the first half.

Lina Magull swung and missed the ball as it sat up invitingly for her in the Colombian penalty area.

Magull was a menace and after making life difficult once more for the Colombian defence, the ball fell to striker Popp with the goal gaping just before the break.

But the usually deadly striker skied her volley high and wide to give the South Americans a huge let-off.

The second half started with Germany, champions in 2003 and 2007, again looking the more likely to score.

Teenager Caicedo started the game for Colombia following a training-ground scare on Thursday when she went down holding her chest.

On 52 minutes she added to her goal from the opening 2-0 win over South Korea with a strike of the highest quality.

The Real Madrid attacker dinked inside, fooled the German defence with a body swerve and bent the ball wonderfully into the top corner.

Germany went in the search of an equaliser and Lena Oberdorf skewed just wide after a corner fell her way.

Colombia thought they had won it but goalkeeper Catalina Perez brought down Oberdorf in the box and Popp defied the whistles to score her penalty, before Vanegas's late intervention.