Euro 2024: Defending champions Italy knocked out by Switzerland

Ruben Vargas (right) of Switxerland is marked by Italy's defender Giovanni Di Lorenzo.[AFP]

Switzerland dumped reigning champions Italy out of Euro 2024 with a stunning 2-0 victory on Saturday to reach the quarter-finals for the second time in their history.

Murat Yakin's supremely well-drilled side outplayed the flat two-time winners in the last 16 clash in Berlin and will face England or Slovakia in the next round.

Ruben Vargas teed up Remo Freuler for Switzerland's 37th minute opener before curling home superbly himself right at the start of the second half to deservedly double their lead.

A new-look Italy, short on star power and without many of the key figures that led them to Euro 2020 glory, offered little in response to Switzerland's energetic display.

"It hurts, it really hurts," said Italy's captain and goalkeeper Gianluigi Donnarumma.

"We can only say sorry to everyone, we were disappointing today and they deserved to win. We struggled all game long."

Former Arsenal midfielder Granit Xhaka, arriving at the Euros after a stunning season with German champions Bayer Leverkusen, pulled the strings as the Swiss rarely looked like letting the lead slip away.

"I'm at a loss for words, it was the most important game of my career," said Swiss midfielder Fabian Rieder.

"Everyone played for each other, we worked well in defence and attack... we have an incredibly great team.

"We want to enjoy the moment now but keep working hard for the next game."

Italy coach Luciano Spalletti dropped Jorginho after his worrying group stage performances, bringing in Nicolo Fagioli in defensive midfield among a hefty six changes which failed to bring the Azzurri to life.

Spalletti said the second goal had knocked the stuffing out of his side and their limitations had been exposed.

"Right now, for too many reasons, we are unable to do anything more than this," he said.

Spalletti had called on his team to improve in the knock-out rounds after they scraped into the Last 16 with a last gasp equaliser in the 1-1 draw with Croatia.

However it was Switzerland who grew in confidence and pulled off their best display yet at the Olympiastadion in a sweltering Berlin, where a far more impressive Italy won the 2006 World Cup.