Watch as Steve McClaren is stopped mid-sentence by England conceding a second goal against Iceland Watch as Steve McClaren is stopped mid-sentence by England conceding a second goal against Iceland

Steve McClaren was left stunned live on air as a "dominant" England conceded what turned out to be the winning goal against Iceland at Euro 2016 on Monday night.

Former England boss McClaren, watching the last-16 game in the studio for Sky Sports News HQ, was feeling encouraged with the scoreline at 1-1 - only to be left flabbergasted by Kolbeinn Sigthorsson's goal in the 18th minute.

"It's been the perfect response from England," said McClaren as Iceland made their way up the field.

He went on to say that their only threat was Sigthorsson before moments later, McClaren's words ran true as the big striker gave his country a shock lead.

Kolbeinn Sigthorsson scores against England in the 18th minute

Wayne Rooney had given Roy Hodgson's men a fourth-minute advantage from the penalty spot at the Allianz Riviera in Nice, but two goals in 12 minutes turned the match in Iceland's favour, setting up a quarter-final clash against France.

Hodgson stepped down almost immediately as England manager after the shock defeat.

Sigthorsson celebrates with his Iceland team-mates

McClaren - whose own England tenure came to an end after a miserable qualifying defeat to Croatia that cost them a place at Euro 2008 - said the current crop had collapsed and the team's "utter failure" would have widespread ramifications.

Play the video at the top of the page to watch McClaren's reaction to the Iceland goal, which has gone viral across social media.