One of the greatest dynasties in modern soccer came to a shattering end when champion Spain lost 2-0 to Chile on Wednesday and crashed out of the World Cup with its glory days consigned to the history books.

On the day when Spain's King Juan Carlos signed his abdication papers, the country's players were forced off their throne as first-half goals from Eduardo Vargas and Charles Aranguiz earned Chile a stunning victory in front of thousands of their ecstatic fans in a 74,000 crowd at Maracana Stadium.

The South Americans, who attacked the holders from the first whistle, reached the last 16 along with the Netherlands and confirmed the pre-World Cup talk that they could advance deep into the tournament with a disciplined display against a tired-looking Spanish side which goes out along with Australia.