Paraguay's players are now legends after shootout win over Germany, coach says

"We never believe that we are beaten," coach Gustavo Alfaro says. "Twenty-six warriors went out there and they came back as legends."

Paraguay's players have turned themselves into football legends by defeating Germany in the World Cup on Monday, coach Gustavo Alfaro said.

"We never believe that we are beaten," Alfaro told reporters after his team's penalty shootout victory. "Twenty-six warriors went out there and they came back as legends."

The Argentine coach had come under criticism after Paraguay lost their opener 4-1 to co-hosts the United States, and scored only one more goal in their other two group matches.

However, they squeezed into the knockout rounds and then stunned Germany 4-3 on penalties after the teams were tied 1-1 over 120 minutes, handing the four-time champions their first-ever World Cup shootout defeat.

Alfaro said the heavy defeat by the United States had paved the way for Monday's historic win.

"If we had not learned from the loss, we would not have been prepared for this match," he said. "I told the players that we have lived through an epic evening."

Paraguay opened the scoring against the run of play in the 42nd minute with a Julio Enciso header before Kai Havertz equalised in the 54th minute.

The South Americans then dug in, surviving a disallowed German goal and hanging on for penalties.

Jose Canale hammered home the winning kick, but only after two of his teammates failed to convert theirs.

"As things always are with us, we don't do things without suffering," Alfaro said, adding a special tribute for Canale whose professional career has been marked by loan spells with clubs in Paraguay, Argentina and Mexico.

"Canale is one of life's champions because he has had to go through a lot of adversity," Alfaro said. "A night like this is one of the gifts that life can give you. It's divine justice."

Paraguay will face either France or Sweden in the round of 16 on Jul 4.