The Roma skipper scored the winner deep in stoppage time of the second half to lift Italy to the next round.

The Italians were forced to play the majority of the second half with ten men after Marco Materazzi was sent-off in the 50th minute.

The Italians will face the winners from the match between Switzerland and Ukraine, who play on Tuesday.

Italy dominated the majority of the first half, wasting several opportunities to take the lead through Alberto Gilardino and Luca Toni.

Italy had an early threat after just three minutes when Alessandro Del Piero moved down the left flank and sent a perfect cross to Toni who headed the ball just wide of the post.

In the 20th minute, Toni headed the ball into the path of Gilardino who hit a smashing volley that Australia keeper Mark Schwarzer tipped over the bar.

Marco Materazzi was sent-off five minutes after re-start when he clipped Marco Bresciano on the edge of the area, but television replays showed that the referee's decision was harsh.

Italy coach Marcello Lippi introduced Palermo defender Andrea Barzagli instead of Toni to fill the void left by Materazzi.

In the 58th minute, Australia's Scott Chipperfield sent a powerful drive from a tight angle but it was sublimely parried by Italy keeper Gianluigi Buffon.

The Juventus keeper produced a string of saves to deny the Socceroos their attempts to snatch the lead.

Deep in stoppage time, Fabio Grosso raced down the left flank and threaded his way into the area before being upended by Lucas Neill for a spot kick.

Totti, who came off the bench as a substitute for Del Piero, stepped-up and successfully converted the ball into the net to seal a dramatic victory for Italy.