A controversial Vincenzo Iaquinta penalty spared champions Italy from World Cup embarrassment as they drew 1-1 against minnows New Zealand on Sunday afternoon.

The Juventus forward hauled Italy level following a debatable decision after former Halifax striker Shane Smeltz had handed New Zealand a shock early lead at the Mbombela Stadium.

Italy dominated a compelling Group F contest thereafter but could not find a way past outstanding goalkeeper Mark Paston. The surprise result keeps alive New Zealand's hopes of reaching the second round for the first time in their history and leaves Italy with much still to do.