A dramatic stoppage-time penalty from substitute Francesco Totti handed 10-man Italy a 1-0 win over Australia in the World Cup second round.

With 94 minues on the clock Totti smashed home from 12 yards after Fabio Grosso was controversially upended in the penalty area by Lucas Neill.

It was harsh on the Socceroos who had more than matched the Azzurri even before the second-half dismissal of Marco Materazzi.

With just three minutes on the clock Alessandro Del Piero swung over a deep cross from the left which Luca Toni headed just wide of Mark Schwarzer's post.

Scott Chipperfield then make a timely tackle inside the area on Alberto Gilardino after Del Piero's neat layoff.

Despite having the lion's share of the early possession Australia were indebted to Schwarzer as he tipped over a powerful shot from Gilardino and moments later denied Toni with his foot after the striker's smart turn in the box.

But the Socceroos did have a Chipperfield shot - which was saved at the second attempt by Gianluigi Buffon - to show for their first-half efforts.

Toni blazed an early second-half shot over the bar as Italy maintained their goal threat.

But on 51 minutes the Azzurri were reduced to 10 men when Materazzi was given a straight red card after a cynical foul on Marco Bresciano as he burst towards the edge of the area.

Australia tried to capitalise immediately and Chipperfield saw his angled shot repelled by Buffon.

And with 10 minutes remaining Tim Cahill missed a glorious chance heading over after getting on the end of a Bresciano corner from the right.

Sub Vincenzo Iaquinta wasted a fine chance to grab the glory for Italy with three minutes to go when after some shambolic Socceroos defending he could only fire straight at Schwarzer.

But that was quickly forgotten, as, with virtually the last kick off the game Totti sealed the Aussies' fate from the spot.