He slid the ball into his own net in the 42nd minute just two minutes after the Azzurri had taken the lead.
Goalkeeper and captain Gianluigi Buffon announced his retirement as the Azzurris unable to qualify for first time since 1958.
The 58-year-old Lippi led the Azzurri to their first World Cup title since 1982.
Images from the World Cup qualifying matches played on Wednesday night.
Images from Tuesday's action in the UEFA Champions League.
Images from Europa and Champions League matches played on Wednesday.
A look at the last 16 team as Euro 2020 enters the knockout phase.
Images from the FIFA World Cup qualifying matches on Sunday night.
Italy coach Giovanni Trapattoni had hoped Paolo Maldini could be persuaded to come back.
Juventus rehire Allegri.
Diego Costa is in favour with Spain's national team again after a couple of terrific displays -- and nobody is happier than the country's other premier striker, Alvaro Morata. Since coming on for Morata after the Real Madrid forward picked up a knock in Spain's 2-0 win over Belgium in Brussels last week, Costa has done nothing but impress new coach Julen Lopetegui.
Summary of World Cup qualifiers played across the world on Thursday
Napoli suffered their first defeat of the season on Sunday when they lost 1-0 at lowly Atalanta while Serie A leaders Juventus surged on with a 3-0 win at Empoli, helped by a Gonzalo Higuain brace.
Iceland's president Gudni Thorlacius Johannesson has told Reuters that he wants even more soccer fans from around the world to join "Team Iceland" and share the joy as his tiny nation makes its World Cup debut in Russia.
Arsenal manager Unai Emery was pleased with his team's first away clean sheet of the season.
Italy coach Antonio Conte said he wants more of the team's supporters at Euro 2016 to show their pride by wearing blue shirts after they secured their place in the knockout stages with a 1-0 win over Sweden on Friday. As the Azzurri secured their second straight win with Eder's late goal, Conte was impressed by the vast number of Swedish supporters inside the stadium in Toulouse wearing their side's bright yellow shirts. Italy, in contrast, looked under-represented in the stadium.
RB Leipzig marked their first appearance in the Champions League knockout round with a deserved 1-0 victory at last season's runners-up Tottenham Hotspur
France striker Kylian Mbappe went off nursing a shoulder injury as they beat Uruguay 1-0 with an Olivier Giroud penalty in a rematch of their World Cup quarter-final on Tuesday.
Antonio Conte bowed out as Italy coach on Saturday after a Euro 2016 shootout defeat by Germany sounding almost broken-hearted that he was leaving behind a "fantastic" group of players.
For Ireland to reach the knockout stages at Euro 2016 they must achieve something they haven't done in 28 years - win a game at the European Championship. Martin O'Neill's team face an Italian side already guaranteed victory in Group E and manager Antonio Conte is likely to field many of his reserves, but it remains to be seen if Ireland can end their long winless streak in this must-win game.
Like an ailing heavyweight, Spain and their hopes of a third straight European title ended in a tame surrender as their 2-0 defeat by Italy represented the definitive end to a golden era in their footballing history. A first-half effort from defender Giorgio Chiellini and a stoppage-time goal by striker Graziano Pelle sent the Azzurri into the quarter-finals at Euro 2016 and left Spain to mull over a second successive failure on the international stage.
Goals by Andrea Barzagli and Mario Lemina propelled Juventus to a 2-0 win at Atalanta Bergamo on Sunday and allowed them to restore their three-point advantage at the top of Serie A.
Italy's Cristiana Girelli bagged a hat-trick and substitute Aurora Galli struck twice as they thrashed Jamaica 5-0 to qualify for the last 16 of the women's World Cup on Friday.
Spain, chasing an unprecedented third successive European Championship title and looking forward to facing Germany or Slovakia in the next round, have the upper hand in recent history, having not lost a competitive match against Italy since the 1994 World Cup.
The 2006 FIFA World Cup winner and Delhi Dynamos coach says 'ISL can also improve Indian players by having good coaches, academies which will help to grow Indian football'
Juventus will end 2013 five points clear at the top of Serie A after a 4-1 victory at Atalanta stretched their winning league run to nine games on Sunday.
Spain's Alvaro Morata scored a goal in each half as they beat a highly defensive Malta side 2-0 away on Tuesday to move top of their Euro 2020 qualifying group with two wins out of two games.
Diego Costa continued his rich vein of form as he helped leaders Chelsea to a 3-0 win over Aston Villa while Louis van Gaal enjoyed only his second Premier League win as Manchester United manager following a 2-1 victory against West Ham.
Defender Giorgio Chiellini scored three times, including an own goal, as Italy beat Azerbaijan 2-1 in their Euro 2016 Group H qualifier in Palermo on Friday.
News of all that's transpired on and off the football field
An inspired performance from Douglas Costa helped Brazil to a 3-0 win over Peru on Tuesday and lifted them into third place in the South American qualifying group for the 2018 World Cup in Russia.
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