Highlights: Spain 0-2 Chile

Story of the match:

World Cup holders are out

Vargas punishes Spain for losing possession

Casillas mistake leads to Chile's second

Costa and Busquets spurn glorious chances

Spain's dominance of global football was brought to a crushing end as they were knocked out of the World Cup by an impressive Chile.

The defending champions were aiming to become the first nation to retain the title since Brazil in 1962. But, after losing their opening match 5-1 to the Netherlands, they surrendered their crown in a cauldron of noise in the Maracana.

First-half goals from Eduardo Vargas and Charles Aranguiz did the damage as Spain failed to contain the rampant Chileans, or muster a response of any real substance.

Their elimination means they are the fifth defending champions to fail to progress from the group stage at the World Cup.

It was Chile's first competitive victory over Spain in 11 matches - and just reward for an attacking masterclass.

Pundits on Spain Thierry Henry: "I've been in that position with France and it's not fun. Spain gave us so much pleasure, you feel sorry for them and sad." Rio Ferdinand: "Chile didn't give them a second's peace. It was almost Premier League-like. It was side-ways, slow football from Spain." Clarence Seedorf: "For Spain, there's been some bad choices. They just didn't combine well and you could see them struggle."

Questions will inevitably be asked about the international futures of Spain coach Vicente Del Bosque and several of his most trusted players, such as goalkeeper Iker Casillas and midfielders Xavi and Xabi Alonso.

There was little sign of shock as the full-time whistle sounded; more despondency and resignation. Chile celebrated, but not wildly; they deserved their victory and will not want to stop there.

Spain must now contest a dead rubber against Australia on 23 June, while Chile and Netherlands meet in an encounter that will determine who finishes top of Group B.

Chile were tipped by many to do well in the competition, but few predicted they would administer the fatal blow to Spain and one of the game's most glittering eras.

Watch Iker Casillas's mistake lead to Chile's second goal

Their fans arrived in huge numbers and helped generate an incredible pre-match atmosphere, although a group of them storming the media centre before kick-off provided a sour preamble.

They seemed to enjoy far greater representation inside the ground, and the noise levels rocketed as Jorge Sampaoli's team made an encouraging start - Alonso forced into a vital goalmouth clearance before Gonzalo Jara headed narrowly wide.

Spain were narrow victors when the sides met at the 2010 World Cup, and again in a friendly the following year, but needed a last-minute equaliser to snatch a draw last September.

Chile have been dubbed by some the 'Spain of South America' - a reference to the Spaniards in peak form - and their pace, power and pressing is a sight to behold.

They opened the scoring in style after Alonso carelessly under-hit a pass, allowing Alexis Sanchez to begin a scintillating move that ended with Aranguiz squaring for Vargas to round Casillas and slot home.

Spain responded positively, and predictably enjoyed plenty of possession, but Alonso shot way over the bar and Diego Costa fired wide.

Del Bosque made a massive call by relegating Xavi to the substitutes' bench, moving David Silva into his attacking midfield position and using the younger, quicker Pedro on the right.

Key facts In winning Euro 2008, World Cup 2010 and Euro 2012, Spain conceded a total of six goals, one fewer than they have so far at World Cup 2014. Spain have conceded two or more goals in more than one game at a single World Cup tournament for the first time since USA 94. Chile have won four of their past six World Cup games after failing to win any of their preceding 13.

But, if anything, Spain looked worse without a man who, while enduring a poor campaign and struggling in Friday's thrashing by Netherlands, has for so long been La Roja's outfield leader, the symbol of their philosophy and one of the best players in the world.

The dropping of centre-back Gerard Pique was less of a surprise but, similarly, did not benefit Spain and their defence looked no more assured or unified with Javi Martinez partnering Sergio Ramos.

They needed to get to half-time without conceding again, but even that proved beyond the European champions as Casillas palmed a Sanchez free-kick straight out to Aranguiz, whose control and finish with the outside of his foot was of the highest order.

Spain finally rallied after the break, Andres Iniesta sending Costa clean through - but Mauricio Isla arrived from right-back with a perfectly-timed challenge. Sergio Busquets then missed an open goal from five yards following Costa's overhead kick.

Isla should have extended Chile's lead only to sky a shot from close range, while at the other end Iniesta and substitute Santi Cazorla were twice denied by Claudio Bravo as Spain bowed out.

Opening goalscorer Vargas has scored 13 in 17 games under Chile coach Jorge Sampaoli

Charles Aranguiz's goal came from his only shot on target in the match

Spain's Busquets misses a chance from five yards early in the second half with his side 2-0 down

In his 126 minutes of World Cup action, Diego Costa (second left) failed to muster a single shot on target

A Chile fan taunts Spain who became the fifth holder to go out at the group stage of the next World Cup