ANALYSIS: England 1-2 Iceland

Iceland's remarkable UEFA Euro 2016 story continued as it came from behind to defeat England 2-1 and book a quarter-final meeting with host nation France.

The tiny nation's players and supporters have won an abundance of admirers during their time at the finals, but many expected the tale to come to an end against Roy Hodgson's highly-fancied favourites.

When Wayne Rooney put England ahead with a fourth-minute penalty, it looked as though Iceland had a mountain to climb if it was to extend its stay in France.

But, in a dramatic opening to the game in Nice it found itself ahead inside 20 minutes as Ragnar Sigurdsson equalised before Kolbeinn Sigthorsson benefited from another costly Joe Hart mistake.

England pressed to get itself back in the game, but as was the case against Slovakia in its final group game it struggled to break down stubborn opposition and it seems unlikely that Hodgson – out of contract after these finals – will continue as manager after more disappointment at a major tournament.

However, the headlines should belong to outsider Iceland, whose sensational debut campaign at a major finals goes on, with a last-eight clash against the host nation in Paris on Monday (AEST) the next chapter in a true sporting fairytale.

Rooney had spoken in the build-up about England's need to find an early goal and it was the captain who provided exactly that from the spot.

Raheem Sterling – regarded by some as a surprise inclusion in place of Adam Lallana – was felled by a clumsy challenge from goalkeeper Hannes Halldorsson and Rooney confidently tucked home from 12 yards.

The lead lasted less than 90 seconds, however, as Kari Arnason flicked on Aron Gunnarsson's long throw and Sigurdsson smashed in from close range.

Dele Alli fizzed a volley narrowly over as England pressed to regain the advantage, but it was Iceland who forged ahead to send its fans into raptures in the 18th minute.

Neat interplay on the edge of the box saw the ball worked into Sigthorsson, whose effort squirmed into the bottom-right corner via the hand of Hart.

As England responded, Daniel Sturridge teed up Harry Kane, whose thumping volley was tipped over by Halldorsson, but Hodgson's side remained frustrated until the break.

Things almost got worse for England 10 minutes after the restart as Sigurdsson's overhead kick from close range was straight at Hart as the defence showed its frailties against the set-piece once more.

Alli blazed wildly over from Sturridge's deflected cross on the hour, but as the game wore on, England's play became more frantic and it was unable to put the Iceland backline under any concerted pressure.

Kane headed weakly at Halldorsson with 11 minutes remaining, while Hart saved smartly from Gunnarsson at the other end.

Iceland was perhaps expecting an England onslaught in the closing moments, but it never arrived as it celebrated wildly at full-time, while Hodgson and his players were left to contemplate a humiliating exit.