LOS ANGELES: Portugal battled into the last 16 of the World Cup with a drama-filled 2-1 victory over Croatia on Thursday to set up a titanic showdown with European champions Spain.

In another nerve-shredding World Cup classic, Goncalo Ramos headed Portugal into the lead in the fourth minute of stoppage time before Croatia saw a last-gasp equaliser agonisingly ruled out for offside in Toronto.

Portugal's 41-year-old superstar captain Cristiano Ronaldo had helped haul his team back into the contest, burying a 68th-minute penalty to cancel out Croatia's 53rd-minute opener from Ivan Perisic.

Ronaldo later joined frenzied celebrations after Ramos glanced home a sensational header deep into injury time to give Portugal the lead.

But Ronaldo and his Portugal team-mates were left stunned when Josko Gvardiol prodded home an apparent equaliser in stoppage time.

Yet there was one final twist when the goal was chalked off for offside after a lengthy VAR review to the disbelief of Croatia's players and their large contingent of fans at Toronto's BMO Field.

After the final whistle, an emotional Ronaldo held up and pulled on a Portugal shirt bearing the number 21, a tribute to late team-mate Diogo Jota, the Liverpool star who tragically died in a car crash almost a year to the day from Thursday's win, on July 3 last year.

"We knew it before the game. It was a so special moment. We speak today, our group, about that, the coincidence of life, it's unbelievable," Ronaldo said afterwards of the tribute to Jota.

"I was amazed because the situation of today. It means a lot to us, not only because we won the game, but the also the way we won the game. It was a difficult game, we knew it."

The result ensures that Ronaldo's incredible World Cup career will be extended for at least one more match when the Portuguese face Iberian rivals Spain in the last 16 in Dallas on Monday.

Ronaldo's second-half penalty made him the oldest man to score in a World Cup knockout match. The goal was also first time Ronaldo had scored in a World Cup knockout game in his glittering career.

Spain romp past Austria

Spain had advanced to that meeting with a scintillating 3-0 win over Austria in Los Angeles earlier Friday that confirmed their status as one of the favorites for the title.

Two goals from Mikel Oyarzabal and a Pedro Porro header sealed victory for the Spaniards, who produced their most complete performance of the tournament to advance to the next round.

Spain opened their World Cup campaign with a faltering 0-0 draw against Cape Verde, but have subsequently built momentum with each match.

With Spanish movie stars Penelope Cruz and Javier Bardem in the 70,492 crowd at Los Angeles' SoFi Stadium, Spain were always in control against a limited Austrian side who failed to register a shot on goal.

Oyarzabal fired Spain into the lead in the 36th minute, sweeping in a low finish to crown a slick passing move, and more deft inter-play set up Porro to head home the second in the 66th minute.

Real Sociedad striker Oyarzabal grabbed his second as he coolly tucked away a low finish from Marc Cucurella's pinpoint cross.

"We played a magnificent match. I am happy because, in every aspect, we came close to perfection," said Spain coach Luis de la Fuente.

"Every match from now on will be more complicated. Every match will be a bit more demanding. We are moving into a more critical phase" of the World Cup, he added.

De la Fuente said his Spain side can still get better "in every area."

"That is our spirit — the belief that we haven't hit our ceiling yet. We need to improve naturally. We are ambitious," he said.

The late match on Thursday will see Algeria take on Switzerland, attempting to avoid becoming the latest African team to fall by the wayside in the knockout rounds following the demise of Ivory Coast, Democratic Republic of Congo and Senegal. Only Morocco have gone through to the last 16.

Algeria have never won a World Cup knockout game in four previous trips to the tournament.

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Ronaldo, Portugal advance after VAR drama to set up Spain showdown

Ronaldo, Portugal advance after VAR drama to set up Spain showdown