Gabriel got the winning kick for Brazil after Gustavo Gomez and Derlis Gonzalez missed for the visitors. Roberto Firmino pulled his spot kick wide for the hosts.
Paraguay coach Ramon Diaz has resigned after the team's elimination in the group phase of the Copa America Centenario, Paraguayan FA (APF) sources said on Sunday.
Uruguayan defender Juan Izquierdo collapsed on the pitch after suffering an irregular heartbeat during a Copa Libertadores game last week.
Hosts France secured a second straight victory as Kiliann Sildillia struck for a 1-0 success over Guinea, while Spain and Japan reached the quarter-finals in the second matchday of the men's Olympic soccer tournament on Saturday.
Balraj Panwar progressed to the quarter-finals of the men's single sculls rowing competition after finishing second in Repechage 2 at the Paris Olympics on Sunday.
Argentina will face Columbia in their Copa America title defence on Sunday, July 14.
Paraguay aim to extend the South American dominance gripping the World Cup when they face Slovakia on Sunday looking for goals but are wary of being caught out on the counter-attack.
Paraguay beat Japan on penalties to move into the World Cup quarter-finals on Tuesday after the match had finished in a goalless stalemate after extra time.
Paraguay are two points ahead of Brazil and Argentina, who play their fourth games on Wednesday.
United States of America secured their passage into the round of 16 riding on substitute Ayo Akinola's 75-minute strike for a 1-0 victory over Ghana in an enthralling Group A game of the FIFA U-17 World Cup in New Delhi.
Lionel Messi scored a hat-trick and had a hand in two more goals as Argentina crushed Bolivia 6-0 in South American qualifiers for the 2026 World Cup.
Paraguay starlet Sergio Diaz is thrilled to be moving to Real Madrid but has yet to find out if he will join the first team squad for pre-season training or play for the club's Castilla reserve side, he told Spanish media. Real have yet to unveil the 18-year-old officially but Marca reported that striker has joined the Spanish giants from Cerro Porteno in a six million euros ($6.64 million) transfer deal to become the first Paraguayan to play for the European champions.
Paraguay continued to shine and recorded their third win on the trot when they thrashed a struggling Turkey 3-1 in a Group B match of the FIFA Under-17 World Cup in Navi Mumbai.
Paraguay coach Gerardo Martino will watch the Copa America final from the stands after he was suspended for two games following a brawl at the end of their semi-final win over Venezuela.
Brazil had failed to impress at the Copa, drawing twice in the group stage while beating only Paraguay.
- England's goal in their 1-0 win over Paraguay on Saturday was confirmed by FIFA on Sunday as an own goal by Paraguay's captain Carlos Gamarra.
Mali are the runners-up side in the last edition of the U-17 World Cup in 2015 and this time they would be aiming to move one step ahead by clinching the title
Paraguay will not settle for less than topping Group F ahead of world champions Italy following their victory over Slovakia on Sunday, striker Roque Santa Cruz said.
Paraguay beat a lacklustre Slovakia 2-0 to move top of Group F on Sunday and close in on a World Cup second round place.
Paraguay crossed a World Cup threshold when they beat Japan on 5-3 penalties to reach the quarter-finals for the first time on Tuesday.
Paraguay qualified for the last 16 of the World Cup despite being held to a goalless draw by a well-organised New Zealand in their Group F match on Thursday.
Veteran defender Carlos Gamarra headed a second-half goal to give Paraguay a hard-fought win 1-0 in their World Cup qualifier.
Paraguay scored twice in the first-half to beat toothless Venezuela 2-0 in a football World Cup qualifier and stay top of the South American group. Paraguay, who have qualified for the last three World Cups, are five points clear of Brazil, who host Bolivia, and Argentina, who visit Peru.
Paraguay produced a ruthless performance to beat Chile 3-0 an go top of the South American World Cup qualifying group. They lead the 10-team group with 10 points from four games. Chile are stuck on four points.
Roque Santa Cruz inspired 10-man Paraguay to a 2-0 win over Brazil in their World Cup qualifier.
Substitute Fred struck in a last-minute equaliser to give holders Brazil a 2-2 draw with Paraguay before unfancied Venezuela upset Ecuador 1-0 to go top of Group B at the Copa America on Saturday.
Paraguay rode their luck to hold Venezuela to a goalless draw before prevailing 5-3 in a penalty shoot-out on Wednesday to reach the final of the Copa America for the first time since 1979.
Paraguay claimed their first points in a 2-0 win over debutants Trinidad & Tobago.
Fourteen stadiums across the US will host the Copa America matches.
In the semi-finals, Argentina beat Italy 3-0, while Paraguay beat Iraq 3-1.
Young Libertad striker Rodolfo Gamarra was a surprise inclusion in Paraguay's 23-man World Cup squad on Monday.
Argentina produced their best performance of the Copa America so far to crush Paraguay 6-1 and set up a classic final against hosts Chile.
Holders Brazil and their Group B rivals breathed life into the Copa America in two six-goal thrillers as they qualified for the quarter-finals with Venezuela and Paraguay on Wednesday.
Paraguay drew 1-1 with Uruguay at the Copa America to go top of Group B, one point ahead of Argentina before the tournament favourites take on eliminated Jamaica later on Saturday.
Paraguay's Lucas Barrios scored in the 90th minute to give his side a dramatic 2-2 draw against Argentina in the Copa America in Santiago, on Saturday.
Follow the quarter-final match between Spain and Paraguay.
Paraguay's squad for the World Cup finals in Germany will comprise the following 23 players:
Ghana outclassed Colombia 1-0, while New Zealand held Turkey to a 1-1 draw in the opening matches of the FIFA Under-17 World Cup on Friday.
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