Dallas, July 3 -- Egypt created history by winning a FIFA World Cup knockout match for the first time, defeating Australia 4-2 in a dramatic penalty shootout after a 1-1 draw in their Round of 32 clash in Dallas on Friday to book a place in the last 16.

The Pharaohs, who had never progressed from a World Cup knockout tie, held their nerve from the spot after 120 minutes failed to separate the sides. Egypt will now face either defending champions Argentina or Cape Verde in the Round of 16.

Australia made the brighter start, with Cristian Volpato nearly producing an early moment of brilliance as his long-range effort clipped the top of the crossbar inside five minutes. Jordan Bos then threatened to break through the Egyptian defence, only...