A dramatic late goal from Arnor Ingvi Traustason helped Iceland to an automatic slot in the Round of 16 as they beat Austria 2-1 in their final Group F game at the Stade de France stadium in Saint-Denis, near Paris.
The win recorded by Iceland saw them finish second in the group behind Hungary, while Portugal will advance as one of the four best third-place teams. Austria, however, have ended the campaign bottom of the section.
Iceland were very close to taking the lead inside two minutes when Johann Gudmundsson struck a rasping effort from distance, only to see the ball smash off the right-hand post.
Iceland continued to threaten the Austrian goal, however, and made the breakthrough in the 18th minute when Jon Dadi Bodvarsson clipped the ball past Robert Almer from close range after Kari Arnason had met a cross from the right.
Austria had several chances to get level and even got a penalty awarded to them as Iceland full-back Ari Freyr Skulason was adjudged to have pulled David Alaba inside the Iceland box.
It was Aleksandar Dragovic that stepped forward for the Austrians, but his spot kick hit the outside of the post.
Austria continued to threaten early in the second period and Arnason had to be at his best to block a strike from Alaba, before Christian Fuchs had an effort of his own blocked in the 48th minute.
Eventually the equaliser did arrive on the hour when Alaba found Schopf and the midfielder tricked his way through the defence before finding the back of the net.
Sigurdsson again came close for Iceland in the 65th minute, but the Swansea City midfielder could not beat Almer from inside the box, before Marc Janko missed the target with a first-time effort down the other end.
It was all Austria as the final 15 minutes approached and Janko again missed the target in the 73rd minute as Iceland continued to ride their luck at the Stade de France.
The pressure continued into stoppage time, but as Austria pour forward, Bjarnason raced clear on the break and set up Traustason to slide the ball home at the far post and set up a date with England in the Round of 16.