It's heart-breaking for England but Italy will face Germany after being the superior team all night and spurning several chances to win the game in normal time.
GOAL! Diamanti scores and Italy are through to the semi-finals on penalties.
If Italy score next they win.
MISS. Cole misses. 3-2 Italy.
GOAL! Nocerino scores! 3-2 Italy.
MISS. Young hits the bar. 2-2
GOAL! Pirlo chips it in! 2-2.
GOAL! Rooney converts! 2-1 England.
MISS! Montolivo drags it wide. 1-1.
GOAL! Gerrard scores! 1-1
GOAL! Balotelli scores! 1-0 Italy.
Here we go. Man City team-mates Balotelli v Hart is the first pen.
END OF EXTRA TIME. England 0 Italy 0. Penalties time.
Nocerino controls Maggio's switched ball as the Italians probe before Montolivo's drive is well wide of Hart's goal. Goal-kick to England with penalties looming.
Diamanti's corner is comfortably behind goal and a few more minutes plod by goalless which is a huge boost for England right now as Italy continue their onslaught.
Marchisio stops Rooney as Italy run England ragged all around the park, with the Lions growing weary with just five minutes left to hold on.
Italy score but it's offside! Maggio crosses in from the right and as Nocerino heads into the net the flag is raised! Massive let-off for England.
Another chance goes begging for Italy as Balzaretti finds Diamanti who is smartly closed down by Gerrard, forcing the forward to balloon his effort over.
Maggio looks to fire through Cole but hits the full-back straight on, with England struggling to get out of their half again now.
Balotelli takes the free-kick away from Pirlo, and it's more like a goal-kick as Pirlo looks away in disgust.
England are furious as Rooney collides with Marchisio and another questionable Italy free-kick is awarded.
Carroll makes two oustanding defensive clearances from the free-kick and the resulting delivery back in, with Lescott then called into action as England hold on here.
Maggio clatters into Cole but incredibly a free-kick is given in Italy's favour. A pretty harsh decision from the referee really.
Maggio nearly loses some teeth after catching a boot from Young during an attempt to win a header against Carroll.
Pirlo's ball to Marchisio slips past Cole, but Diamanti's cross/shot is poor as it flies behind goal.
Italy get the game started again.
HALF TIME IN EXTRA TIME. England 0 Italy 0. Crikey, this is tense.
Johnson does well before finding Walcott who lifts the ball to the back post with Carroll unable to keep it in play.
Pirlo skips past Rooney, with Diamanti an option on the left, before Carroll stops Maggio and a free-kick isn't given in the Italians' favour.
Pirlo's ball is cut out by Young, who does well to advance before Carroll controls his pass poorly and is caught offside in the process.
Diamanti hits the post! His cross catches Hart out and ends up clipping the post and deflecting out of play for an England goal-kick.
Marchisio twists but can't find room to shoot as Italy patiently press with England keeping their shape very well.
It's Balotelli again, who has options, but opts to shoot once more and again Hart wins the battle between the two.
England have certainly begun the livelier of the teams, as Balotelli is driven into shooting from range as Terry's block takes it into the hands of Hart.
Young looks for Walcott at the far post but the winger is just too small as Buffon easily claims with a confident jump.
Walcott breaks with intent but Italy close down Rooney impressively and the striker is forced to concede possesion amongst a host of Italian bodies.
The free-kick results in a scramble but Lescott is marginally offside and as Carroll the pounces on the loose ball the flag is raised.
The weary Parker makes way and Henderson makes his way on to the pitch.
Maggio picks up a booking for sliding through Young but the decision looked rather harsh on the Italian full-back.
Nocerino unleashes a thunderbolt but it's some way over the bar as Jordan Henderson prepares to make his entrance for England.
Carroll turns Nocerino but amazingly no foul is given as the striker goes tumbling. Italy resume possession with Pirlo continuing to dictate play, the midfielder refusing to tire.
England get extra-time underway.
Here we go. 30 more minutes as this nerve-shredding quarter-final becomes the first to go to extra-time. The players have had a rest and we're nearly good to go.
END OF NORMAL TIME. England 0 Italy 0.
Great chance for England! Cole delivers after Pirlo was dispossessed and as Carroll knocks the header down Rooney fires an overhead kick well over the bar!
Straight swap as Abate comes off, presumably with an injury as Christian Maggio replaces him.
Three minutes of time is added on.
Johnson makes a crucial block! Nocerino is found by Pirlo in the six-yard box outstandingly and the right-back blocks the shot with a wonderful interception.
Rooney scuppers a pass from Walcott with England really struggling to create decent chances in the final third since the break.
Carroll's shot is blocked and as Walcott lurked in acres of space, Parker plays a dreadul ball that wanders out of play. Could have been a real opportunity for England.
It's back to being all Italy as England sit back and lap up the pressure for the time being. Abate crosses upfield but Balotelli is penalised for a handball as the latest attack comes to an end.
Terry was cleared tugged in the penalty area during that delivery, a pull that wasn't spotted but one that England will certainly feel aggrieved about regardless.
Gerrard's free-kick sees Terry go flying, with Parker's thunderous effort cracking Balzaretti. He makes the most of it by holding his face and play is stopped wrongly.
Young drives forward and Barzagli is booked for a strong but competitive tackle on the winger.
England can't get out of their half at the moment as Italy probe forward again, Bonucci leading the way before Diamanti strikes and draws the save from Hart at the near post.
De Rossi, oddly perhaps, makes way and AC Milan's Antonio Nocerino takes his place.
Hart punches under the looming threat of Balotelli and Italy win a corner which Hart punches away confidently.
Cassano comes off for Italy with Alessandro Diamanti, the former West Ham man, taking to the field.
Gerrard's header clips the head of Rooney but it was a poor jump from the striker and ends up being routine for Buffon.
Carroll's strength wins England a free-kick as Bonucci backs into the England striker 30 yards out.
Terry clears Montolivo's cross before showing incredible desire then get in the way of Marchisio's powerful shot. Italy will feel more than aggreived if they don't win this.
Pirlo sweeps the ball out to Balzaretti, but Parker shows good fight to nick the ball from Montolivo, winning a free-kick as a result.
Walcott plays the ball back to Buffon and the game resumes with Italy in possession.
A promising England attack finds Young in space but his ball is a demanding one for Walcott to retrieve and the winger helplessly watches it run out of play.
Carroll displays some solid hold-up play but Parker concedes possession too easily again to De Rossi with Abate offside from his cross-field pass.
Pirlo continues to do what he wants, finding Montolivo with time to burn. England need to press him far more vigilantly.
Terry's there again to meet Marchisio with a wonderful sliding challenge. The centre-back has been out of this world at times tonight.
Carroll is penalised in the box when really Terry under De Rossi and Rooney were being tugged by their respective markers. Very harsh decision from the referee.
Chance for England! Lovely spell of passing as Carroll fails to meet Walcott's ball before Young's shot results in a corner as it narrowly skims past the post.
De Rossi ventures into another good position as Pirlo finds him at the back post but this time the chance was tougher and it's a volley straight into the crowd.
Lescott pushes up to catch Abate offside. Alongside Terry he has been solid tonight but England continue to give the ball away far too easily at times.
Double sub for England as Milner and Welbeck are replaced by Andy Carroll and Theo Walcott.
Abate crosses in with sheer magic displayed by Balotelli as he controls the ball and tries to steer it past Hart with an overhead kick that's narrowly over the bar.
Both players return to the pitch as both sides prepare to make imminent substitutions.
A clash of heads between Young and Abate results in the stoppage of play and for England, a respite from a relentless spell of Italian attack.
Pirlo continues to dictate the game with a wide range of exquistite passes. England look quite powerless at times at there now.
Pirlo plays a ball through to Abate, but Cole recovers his position well to make the tackle.
Welbeck shows good pace to steal from Pirlo, but Italy show their combativeness as two excellent tackles from Balzaretti win back possession for the Italians.
Young is looking like a shell of his former self out there as he is dispossessed by Abate, but Gerrard takes back control before slipping as he closed in on Bonucci.
Balotelli again judges his run to perfection but Hart sprints out to claim. Moments later Milner scuffs a poor shot wide as England recover from that onslaught.
England's goal continues to lead a charmed life as Pirlo and Balotelli are denied by Hart before Montolivo fires over the bar from close range!
Italy probe but England keep their shake before Abate crosses in with Terry defending magnificently to clear and deny Balotelli.
The impressive Bonucci clears away as England fail to capitalise with Parker sliding in through Pirlo to concede a foul.
Rooney does really well down the left and ends up earning England a corner off Abate.
What a chance for Italy! Hart had punched the corner away convincingly but the ball comes back into the box and De Rossi, onside, scuffs his shot from close-range. An incredible miss!
Abate skips past Cole and Young too easily, with his cross headed away by the watchful eye of Johnson. Italy corner.
A bright start from England as Gerrard fires a weak shot on goal which falls at Rooney who can't work his body to shoot. Seconds later, Milner crosses in but it's behind every England player in the box and Bonucci clears.
England kick off the second half.
Daniel Chumley issues the rallying cry, writing: "Good half so far from england, defence look strong. We need to keep more of the ball in mid field and get on the ball more and most importantly take our chances! England to win 1:0 with Rooney on the score sheet. Come one England!"
Both teams have had chances but neither have been able to convert as an exciting half ends goalless. Send your second half predictions to email@example.com or tweet @JWoodfield365
HALF TIME. England 0 Italy 0.
Balotelli draws a foul from Terry as Italy look to resume their period of dominance with Marchisio and Pirlo pulling all the strings in midfield.
England break after a mix-up between Italy's midfielders, but Rooney's delivery into the box is poor and Bonucci is in a good position to clear.
It was an excellent interception from Lescott, and the corner comes to nothing as Italy come closer again to breaking the deadlock.
Welbeck prevents a corner after dynamic work from Balzaretti, but the throw-in results in Balotelli being denied an open goal by Lescott!
Parker goes in really strongly on De Rossi, inadvertantly though, and it's a free-kick to Italy who have ascended in this match greatly over the last ten minutes.
Italy play it short, with Cassano nearly catching Hart off guard with a curling effort from 20 yards that sees the England keeper do well in the end.
Rooney goes down after slipping away from De Rossi, with no foul given, before up the other end Cassano is tugged down by Terry and it's an Italian free-kick.
De Rossi looks for Balzaretti inside Johnson but his cross is poor and it lands straight at the feet of Terry. It's incredibly tense out here.
Johnson is becoming slightly troubled by the Italian attacks down the left, with Welbeck tracking back to help out against the excellent work being done by Montolivo and Pirlo.
Cassano is the striker this time to powers a rather poor shot at goal, with Hart well positioned to watch the ball dribble wide.
Chance for England! Rooney links up with Welbeck, and the latter powers a side-footed effort at goal that dips but still narrowly flies over the bar.
Montolivo lifts the ball incredibly into the penalty area for Balotelli, who has to improvise after staying onside, but can only stab his effort straight into Hart.
Balzaretti is getting more and more time on the ball on the left, with Johnson forced into some solid defending to prevent a delivery into the box.
Marchisio turns away from Lescott but Cassano is closed down by Terry as England's vigilant marking continues to impress in this tournament.
Montolivo looks to cap off a period of passing with a goal from range but he drags his shot horribly wide and it's an England goal-kick.
After a midfield scramble, Gerrard looks for Cole on the left but ends up driving the ball out of play.
Rooney's ball to Milner is spotted by De Rossi, who intercepts just as England start to attack with options. Milner and Young have been much more involved tonight.
Great chance for Italy. Balotelli picks it up in a one-on-one with Terry and as he unleashes his shot, the former England captain makes a superb tackle to take the sting of the strike, which lands in the arms of Hart.
Cassano again looks to find Balotelli but again he times his pass wrongly, but Hart claiming well away from the striker.
Italy try to work a corridor of space, with Riccardo Montolivo doing well to escape Ashley Cole but Lescott was waiting as he makes a well-timed tackle.
This time, Lescott wins the battle against Balotelli as the Italy striker is penalised for tugging the England man's shirt.
Cassano shapes to shoot as Italy begin a spell of pressure, but he gets his angles all wrong and his effort is harmlessly over the bar.
A Pirlo corner is cleared at the near post thanks to a good Welbeck header, with Bonucci agonisingly clear to meeting the ball for the Italians.
Some menacing link-up play from Cassano and Balotelli looks threatening on the edge of England's box, until Terry makes a solid challenge as the bodies flew back to protect the England goal.
Gerrard swings a cross in early looking for Rooney, but it was asking a lot of the striker who wasn't near the ball as it landed.
Pirlo's delivery finds Balzaretti on the left but the full-back's cross back into the box lands out of play near the far post. Big waste from the Italians.
Lescott tugs down his Man City team-mate Balotelli, needlessly as well, and Italy win a corner 30 yards out.
England end up breaking from that Italian attack but Rooney's powerful progress down the right results in a ball delivery from the touchline. Italy goal-kick.
At the other end now as Federico Balzaretti crosses in from the left with Terry clearing away safely.
Johnson floats an incredible ball into the six-yard box but Rooney can't head in from close range! Excellent defending from Bonucci but an excellent chance for England.
Johnson retrieves Young's delivery, but Rooney can't direct an effort on goal before Buffon punches away very poorly with Parker attempting a drive from range which trickles wide. This a very promising spell from England.
Now it's a corner, as Wayne Rooney's poke at the near post is seen behind goal by Abate.
Parker helps out Johnson in winning back possession, with Ignazio Abate doing well to prevent a corner being given after working from Gerrard down the left.
Johnson is caught out and Cassano looks to break on the left, Balotelli making a run in behind John Terry, but the ball to the Manchester City is dreadful from his striker partner.
Gerrard whips it in from the right but it's comfortable for Bonucci to clear, before Young drops it back in with the centre-back again doing well.
What a start this has been. Claudio Marchisio searches for Antonio Cassano and offside is the decision given as the game comes to a temporary halt.
Scott Parker drives through Italy's defence impressively with Andrea Barzagli getting the way, whether he knew about it or not to deny the midfielder getting a shot away.
England look to keep the ball, with Steven Gerrard finding Glen Johnson beautifully. Moments later Ashley Young delivers into the six-yard box with Johnson's stab claimed brilliantly by Gianluigi Buffon!
Italy hit the post! Daniele de Rossi fires an exquisite curling shot from 30 yards that leaves Hart for dead with the post the only thing denying the Azzurri taking the lead. Brilliant start so far from the Italians.
Leonardo Bonucci looks for Balotelli with a wonderful ball, with Joleon Lescott fortunate his high foot intercepted the pass. Italy moving the ball around nicely early on.
Balotelli has a speculative poke, which bobbles into the path of Joe Hart who nervously fires his clearance into the crowd.
Italy get the last quarter-final of Euro 2012 underway!
The national anthems are completed, with Mario Balotelli and Wayne Rooney both giving it some oomph, and we're now moments away from kick-off.
Geoff Richardson in Saudi Arabia writes: "Really think England will struggle tonight! Apart from a draw against France, have played fairly mediocre opposition so far and not been convincing in their wins. Close but the Italians will edge it!"
The man in black tonight is Pedro Proenca (Portugal).
Italy team: Buffon, Abate, Barzagli, Bonucci, Balzaretti, Pirlo, Marchisio, De Rossi, Montolivo, Balotelli, Cassano. Subs: Sirigu, Maggio, Chiellini, Ogbonna, Thiago Motta, Di Natale, Giaccherini, Borini, Giovinco, Diamanti, Nocerino, De Sanctis.
England team: Hart; Johnson, Terry, Lescott, Cole; Milner, Gerrard, Parker, Young; Rooney, Welbeck. Subs: Green, Kelly, Walcott, Henderson, Carroll, Baines, Jones, Jagielka, Downing, Oxlade-Chamberlain, Defoe, Butland.
As expected, England have named an unchanged side for the first time in two years. Hodgson's decision to stick with the side that defeated co-hosts Ukraine on Tuesday means a further show of faith in Danny Welbeck, who made his first competitive start at the beginning of the competition. It also suggests Wayne Rooney will be asked to pressurise Italy danger-man Andrea Pirlo if he opts to pick the ball up in deep positions, with James Milner's industry providing cover for Glen Johnson on the right flank.
Our friends at Sky Bet are torn over favouritism tonight, making both England and Italy 9/5 to win in normal time with the draw 2/1. Both nations are 10/1 to win in extra-time and 9/1 to triumph on penalties, while Wayne Rooney and Mario Balotelli are the favourites to score first at 5/1 and 13/2 respectively.
Here's Gavin Kelleher, who more or less predicts the same as me. He writes: "The fear factor and over expectation has gone from the England team for the first time and I can see a very entertaining and close 1:1 match going al the way to penalties with England winning with 2 penalty saves from Joe Hart."
If you'd like to drop me a line tonight you can send an e-mail to firstname.lastname@example.org or tweet @JWoodfield365 and I'll publish the messages that move me, per se.
Good evening and welcome to the NSC Olimpiyskiy in Warsaw for live coverage of England v Italy in the Euro 2012 quarter-finals. Roy Hodgson has reportedly selected the same side that beat Ukraine on Tuesday but as soon as that's confirmed I'll bring it to you all asap.
Kick-off is at 1945 BST.