Auckland City are through to the quarter-finals of the FIFA Club World Cup after edging Moroccan side Moghreb Tetouan 4-3 in penalties in Morocco today.

The Oceania champions should have won in regulation time but after 120 minutes of largely dull action, penalties was the only way to decide who would play Algerian side ES Setif in the last eight.

In a win worth $1.3 million for New Zealand Football and its ASB Premiership franchises, Auckland City are now only two wins away from a possible dream match-up against Champions League winners Real Madrid.

Just as significantly, Auckland FC have won just their third ever match at this event after winning two matches at the 2009 edition.

In a game bereft of opportunities, a penalty shootout was the only way to decide a winner, with former All White Tim Payne calmly slotting home the first penalty.

Former All Whites keeper Tamati Williams then made one of the biggest saves of his career, with a green laser shining in his eye, when he denied Ahmed Jahouh with a good save to his right.

John Irving, Zaid Krouch, Darren White and Serigne Fall all converted their penalties to leave Auckland City on the brink of qualification, at 3-2 up.

But fingernails were shortened when Croatian Mario Bieln's weak shot was saved by Mohamed El Yousfi.

At 3-3, Auckland's City Nigerian striker Sanni Issa's brave shot into the roof of the net put all the pressure back on the home side and Mehdi Khallati choked in the decisive moment by hitting the post, to spark wild celebrations.

Lively start

Auckland City, making a record-breaking sixth appearance at this tournament, had the best two goal scoring opportunities of the first half.

In a lively start, Payne drilled a low shot from outside the box that was well saved by the Moghreb Tetouan keeper.

Then against the run of play, the Oceania champions pounced on the counter-attack with Ryan De Vries setting up Emiliano Tade with a wonderful chance from 10 yards out, but the Argentinean sprayed it wide.

De Vries had the best chance of a second half but he could only hit the side netting.

De Vries set up a late chance for Spaniard Angel Berlinga in extra time but his effort went wide to send the match into penalties.

The Navy Blues win was their second FIFA Club World Cup victory over African opponents and made up for last year's heartbreaking 2-1 loss to Raja Casablanca.