Germany entered the last-16 clash as favourites, but Gustavo Alfaro's disciplined side frustrated Julian Nagelsmann's team throughout a tense contest before keeping their composure in the decisive shootout.

Germany controlled possession during the first half but struggled to create clear chances. Their only effort on target came when Joshua Kimmich fired a tame shot from a tight angle, while Paraguay stayed organised and waited for their opportunity.

That chance arrived just before half-time. Miguel Almiron, back after suspension, combined well with Matias Galarza, whose cross found Julio Enciso. The forward powered a header into the bottom corner to give Paraguay a surprise lead.

Germany improved after the break and eventually found an equaliser through Kai Havertz. Leon Goretzka delivered an inviting cross and Havertz flicked the ball into the far corner for his third goal of the tournament.

The four-time world champions pushed for a winner, but Orlando Gill produced an outstanding save to deny Havertz a second goal before extra time was needed.

Nagelsmann introduced the towering Nick Woltemade late in normal time as Germany looked to make their aerial advantage count. They thought they had finally gone ahead when Jonathan Tah headed home, only for the goal to be ruled out following a VAR review after Waldemar Anton was judged to have fouled Gill.

The extra 30 minutes became increasingly physical, with fouls and stoppages disrupting the flow of the game. Germany continued to search for a breakthrough, but Gill remained solid, while Anton and Nadiem Amiri both went close before penalties became inevitable.

The shootout produced more drama. Both teams missed two penalties, but Tah's miss proved decisive as Jose Canale confidently converted the winning spot-kick to send Paraguay into the last 16.

Paraguay coach Gustavo Alfaro praised his players for producing what he described as an "extraordinary" performance against one of the tournament favourites.

"It was a match full of tension from start to finish because we knew we were facing one of the main title contenders, a rival of enormous quality who, beforehand, were favourites," Alfaro said.

He credited his players for carrying out the tactical plan perfectly.

"The players understood perfectly what the match required and put in a huge effort to prevent Germany from finding spaces and playing their game."

Alfaro also highlighted the demanding conditions in Massachusetts.

"The temperature was high and the constant effort to recover and close down spaces often left us with less energy to attack."

Even after Antonio Sanabria and Fabian Balbuena missed chances to seal the shootout earlier, Alfaro admired his team's resilience.

"It seems if we don't suffer, it doesn't count," he said. "This qualification is for all Paraguayans who believed in us."

Goalscorer Enciso admitted Paraguay respected Germany's quality but insisted his side never feared the four-time champions.

"They have some very good players. But we're not afraid of anyone," he said.

Looking ahead to a possible last-16 meeting with France, should Didier Deschamps' side defeat Sweden, Enciso remained confident.

"They're a very good team, with players of the very highest level. We're going to prepare to face them as such. We also have our own strengths, and with our style of play, we're going to try to make things difficult for any opponent."

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