- England eliminated from Euro 2016 after humiliating defeat to Iceland
- Roy Hodgson announces his departure immediately after match
- Wayne Rooney penalty gave England the lead after four minutes
- Ragnar Sigurdsson equalised 34 seconds later
- Kolbeinn Sigthorsson put Iceland ahead after Joe Hart error
- Iceland to meet France in quarter-final
- Iceland competing in their first ever major international competition
- England have not won a European Championship knock-out game in 20 years
- Follow all of Euro 2016 through our dedicated page
The FA have issued the following statement following Hodgson's announcement.
Like the nation, we are disappointed to lose this evening and that our run in Euro 2016 has come to a premature end. We had high hopes of progressing through to the latter stages of the competition and accept that we have not met our own expectations or those of the country.
"We back Roy Hodgson's decision to step down as England manager and will discuss next steps imminently.
"For now, we congratulate Iceland for reaching the quarter final and wish them well against France at the weekend.
"Finally, our sincere thanks go to the travelling fans for their incredible support tonight and to everyone back home for getting behind the team.
Roy Hodgson has announced he will leave his position as England manager. He said:
I will look back on the four years with pride. I want to thank the media for the support you have given me.
"I am sorry it will have to end this way but these things happen. I hope you will still be able to see an England team in a final of a major tournament soon.
England have shattered expectations of just how bad they are capable of being. Iceland executed their game plan perfectly, but it does not account for the elementary mistakes that dominated their dismal performance this evening.
They are going home. Deservedly. Something remains very wrong with English football.
Iceland's wonderful journey in France continues. Goals from Ragnar Sigurdsson and Kolbeinn Sigþórsson have sealed the most famous night in their footballing history.
England are out! Jamie Vardy, Dele Alli, Harry Kane, players who dominated the richest league in European football last season, fall to the ground in despair. Even by England's standards, this has been an utter catastrophe. They go home and Iceland march on to meet France in the quarter-finals.
FULL TIME: England 1-2 Iceland
Sturridge floats a ball into the box and Vardy is inches away from contact! Iceland knock away for another corner. One last chance? Joe Hart is up.
Just over a minute left. England are lumping the ball into the box repeatedly with Gary Cahill now playing as a centre forward.
Marcus Rashford looks to make an immediate impact, dancing in from the left to win a corner for his side. Three minutes of time added on here.
England could have been trailing 3-1 after this, had it not been for Hart.
Rose does well down the left to win a free kick but yet again, Kane takes it and swings it straight out of play. It really is staggering how bad England have been at doing the simple things tonight.
Rooney's dismal evening is brought to an end, Marcus Rashford is on for the final five minutes.
Iceland denied a third! Aron Gunnarsson rampages through the middle on the counter, trying to twist and turn inside Wilshere, who is the only man back. He manages it and has space to fire on goal and it forces a very decent save from Hart.
Harry Kane is free to receive a pass but the ball rolls over his foot and away from him. This is extraordinary.
Eight minutes remain here. England need a goal to force extra-time.
Wilshere has been England's least worst player since coming on (words like best or influential no longer applicable) . He lifts another decent ball into the box for Kane to run onto but he can't quite force it across goal far enough and it's straight at the goalkeeper.
Sigurdsson's challenge here was so clean it took the mud stains off Vardy's shorts.
What an awful sequence that was just now for England. Bjarnason is free is jog into the box unchallenged before someone finally sticks a foot in to win the ball back. It's moved out to Sturridge who, inexplicably, immediately gives the ball back to Iceland. They are so surprised how bad England are they lose concentration and give it straight back.
15 minutes remain in this match. If anything, England are looking worse as this match goes on.
Iceland aren't getting out of their own half often here, but do pose a threat when they do. On the counter, Sævarsson breaks down the right from full-back, cutting inside Rose before lashing a shot on goal from a tight angle. It's not a bad effort given it is on his weaker foot, but it isn't troubling Hart.
Terrific defending from Sigurdsson! Vardy is freed down the middle by a wonderful pass from Kane but an immaculate challenge from the Iceland centre-half comes in to cleanly push the ball away from him.
Vardy is on, but we haven't seen much of him yet.
Now the ball pops up invitingly for Wilshere from 25 yards out, urging the Arsenal midfielder to take the half-volley on. He shouldn't have bothered, it's almost as bad as Kane's effort a moment ago. Almost.
Oh wow. That was incredibly poor from Kane. After Ronaldo-like preparation, he slices that free kick well wide from goal. Dreadful.