Chances were at a premium in the first half, as Spain was limited to a handful of long-range efforts that didn't really trouble goalkeeper Stipe Pletikosa. Fernando Torres had the best chance to open the scoring in the first half, bringing a fine save out of Pletikosa from a tight angle.

Sergio Ramos then drilled a long range effort that Pletikosa also dealt with well, before Slaven Bilic's side produced efforts of their own. Danijel Pranjic shot low at Iker Casillas, before Mario Mandzukic blazed over the bar from just inside the box.

In 27th min it was Mandzukic again. 'Super Mario' lumbered down the right wing, past Pique and Ramos, who came back to challenge right on the edge of the box. Mandzukic got to the ball first, but was brought down in the box by Ramos. That might have been a penalty to Croatia.

Spain dominated possession, as usual. But Croatia came agonisingly close to taking the lead in the 59th minute when Luka Modric beat Ramos on the right and crossed to the back post for a wide open Ivan Rakitic, who headed the ball forcing a dramatic save from Casillas. Spain, seeking to regain control of the game, replaced Torres with Navas. In 66th, Slaven Bilic made a double substitution, with Ivan Perisic and Nikica Jelavic on for Domagoj Vida and Danijel Pranjic.

The game sow another dangerous attack from Croatia in 69th. Jelavic kicked the ball wide to Perisic, whose return ball was just over the head of Jelavic. A few seconds later, Perisic blasts a volley way over the bar from a tight angle on the left of the box.

An excellent volley from Perisic (79th) on the right side of the box was pushed away by Casillas, plunging to his right. Croatia won a corner soon after, but Rakitic sent the ball straight into the hands of the Spaniard goalkeeper.

Sergio Busquets missed a great chance with ten minutes remaining but he hesitated in the box and was dispossessed by Darijo Srna.

Ivan Strinic won a corner down the left in 86th. Bilic was pacing around furiously, waving his hands at the fourth official. The corner is swung in by Sevilla's Rakitic, and it almost ends up in the net. Corluka got in front of Casillas, only a few meters from goal, but he had to jump away from goal to connect with the ball and it hit his shoulder before looping wide of the far post. He was being dragged down by Busquets as well. In fact, many would say that it was a clear penalty.

Having come on for Chelsea star Fernando Torres in the second-half, Sevilla’s Navas hit the 88th-minute winner.  Barcelona’s Cesc Fabregas chipped the Croatian defence and sent Andres Iniesta clear. Iniesta provided the final pass to Navas, who tapped in.

"We were close, it's true, we could have won tonight and we could have stopped them tonight. I think they had a hard time," Croatia coach Bilic said, underlining that his team had battled hard. "Some teams can beat Spain, but it's not easy. We knew we'd have two or three opportunities. It's not easy when you play against Spain. You have to score when you have the chance", Bilic said.

But, there could be more bad news for Croatia on Tuesday when UEFA are expected to make a ruling over alleged racist chants from Croat fans directed towards Italy striker Mario Balotelli in last week’s 1-1 draw.

A stiff penalty is expected given UEFA president Michel Platini’s previous assertions that European football’s governing body has a “zero tolerance” on the issue.

Spain qualify as Group C winners and will now play their quarter-final in Donetsk, Ukraine, on Saturday against the Group D runner-up, while Italy finish second thanks to their 2-0 win over Ireland in Poznen.

Croatia (4-2-3-1) Pletikosa; Vida, Corluka, Schildenfeld, Strinic; Vukojevic, Rakitic; Srna, Modric, Pranjic; Mandzukic.

Subs: Kelava, Simunic, Buljat, Jelavic, Badelj, Vrsaljko, Dujmovic, Kalinic, Kranjcar, Perisic, Eduardo, Subasic.

Spain (4-3-3) Casillas; Arbeloa, Pique, Ramos, Alba; Xavi, Busquets, Alonso; Silva, Torres, Iniesta.

Subs: Valdes, Albiol, Javi Martinez, Juanfran, Pedro, Fabregas, Negredo, Mata,
Llorente, Santi Cazorla, Jesus Navas, Reina.

Referee Wolfgang Stark.