Germany crashed out of the World Cup after they were beaten on penalties by Paraguay following a 1-1 draw in Boston in the round of 32.

The four-time world champions had never previously lost a shootout in the tournament, but that record was ended sensationally by the valiant South Americans, who defended manfully for 120 minutes before outstanding central defender José Canale hit the winning spot-kick in sudden death.

It came after Paraguay had twice blown match point to allow Germany back, but Julian Nagelsmann's side had dominated the game sufficiently to have finished the tie long before that point.

Julio Enciso headed the opening goal against the run of play in the first half only for Kai Havertz to hit back shortly after half-time to level.

At that stage it looked like Germany would go on to win but it was not to be. Jonathan Tah had a header disallowed in extra-time for a foul harshly given by VAR and the Bayern Munich defender would go on to miss the crucial penalty, skying over the bar and allowing Canale to win it 4-3 in the tie-breaker.

Germany were badly frustrated by a side that sat back and left little space for them to play.

It made for match that offered little spectacle, in which the main talking point was a courageous and highly-disciplined defensive display by Paraguay.

Central defensive pair Gustavo Gómez and Canale in particular gave a memorable performance as Nagelsmann's side were left with no answers creatively and were forced to accept their fate would be settled from 12 yards.

Paraguay stunned Germany four minutes before half-time. A clever piece of overlap play down the right saw Matías Galarza released down the outside of defender Nathaniel Brown. Galarza crossed into the six-yard box where Enciso had been left entirely unmarked to nod the ball into the ground and in past the static Manuel Neuer.

Germany finally rallied before the break and threatened through Felix Nmecha, his shot from Leroy Sane's tee-up was deflected just beyond the far post. His team had 79 per cent possession in the first half but almost nothing to show for it in front of goal.

Enciso almost doubled his team's lead after Paraguay made a confident start to the second half, only a good spread from Neuer preventing the forward from slotting in at the near post.

He was made to regret not taking his chance as within minutes Germany were level. Florian Wirtz sent over a deep cross form the left, Havertz got across his defender and flicked a deft header into the far corner to earn his team a reprieve.

Tah thought he had given his side the lead via a thumping header from a corner, but was denied after VAR adjudged goalkeeper Orlando Gill to have been fouled, and penalties beckoned.

Havertz and Nick Woltemade both missed for Germany, Antonio Sanabria and Fabián Balbuena blew two match-winning efforts, before Tah missed the target and Canale settled it.