Johannesburg - World champions Italy slid to a shock 1-0 defeat to Egypt in Johannesburg on Thursday in a setback to their hopes of reaching the semi-finals of the Confederation Cup.

Mohammed Hamos rose unmarked to head in from a corner from Mohammed Aboutrika five minutes before half-time for a win which keeps Egypt in the running in Group B.

Both teams now have three points, three behind Brazil who defeated United States 3-0 in Pretoria earlier in the day.

The group will now be decided on Sunday when Italy take on Brazil, while Egypt play the United States, who hang on to an outside chance of progressing.

Italy will go out if they fail to beat five-time world champions Brazil and Egypt defeat the United States.

Italy captain Fabio Cannavaro returned from injury to boost the Azzurri, while Villareal's Giuseppe Rossi, who scored twice in the 3-1 win over the United States, started in an attacking left-side role.

Fabio Quagliarella also came in on the right, with Vincenzo Iaquinta again spearheading the attack.

But the Italians made little headway against a well-organized Egyptian side who played with confidence after performing well in their narrow 4-3 defeat to Brazil three days ago.

Marcello Lippi's side had to wait until nine minutes after the break for the first real chance when Iaquinta did well to control a long ball in the area but was thwarted by keeper Essam El Harady who quickly closed him down.

The Juventus striker made another chance for himself with 20 minutes to go when he turned in the area only to see his shot well saved by El Harady.

The keeper turned into Egypt's matchwinner with further saves from Riccardo Montolivo from a good position in front of goal, and another stop on the line from Iaquinta effort as the Italians finally began to create chances.

Lippi had sent on Bayern Munich striker Luca Toni for Rossi in the 58th as Italy pressed forward but there was increasing desperation about their play as the clock ticked down.

Egypt lost Mohammed Zidan, who scored twice against Brazil, midway through the second half with a thigh muscle problem he had suffered before the break, but the African champions seemed content to sit back to protect their lead.

Against Brazil, Egypt had lost to a penalty in stoppage time, but this time they managed to hold on for a famous victory.(dpa)