BREAKING: Megan Rapinoe skies penalty as Sweden knock holders USA out of the World Cup

Sweden have beaten the United States in the most dramatic of penalty shootouts at the World Cup, sending the reigning champions home.

The highly-anticipated Round of 16 clash had to be decided by penalties, with nothing to separate the pair after 120 minutes.

Nathalie Bjorn's miss presented one-time Ballon d'Or winner Megan Rapinoe with a major opportunity, but the 38-year-old was unable to convert, shanking her spot kick hide and wide.

Rapinoe came on as a substitute in the 99th minute in what will be her last ever World Cup, but it was not the fairytale ending she may have been hoping for.

You can watch the footage below.

Sweden's Rebecka Blomqvist then stepped up, but saw her effort saved by Alyssa Naeher. Sophia Smith then had the chance to win it, but curled her penalty the wrong side of the woodwork.

Sudden death ensued and Kelley O'Hara struck the post, before goal-line technology was required to determine whether Lina Hurtig's winning penalty was over the line.

An incredibly tense minute ensued as the players waited before referee Stephanie Frappart ruled that it was a goal, sending the Swedish fans into ecstasy.

It is the first time in World cup history that the USA have not made the last three.