PARIS (Reuters) - Holders Spain were knocked out of Euro 2016 in a 2-0 defeat by Italy on Monday after goals by Giorgio Chiellini and Graziano Pelle set up a quarter-final with world champions Germany.

Chiellini opened the scoring after 33 minutes while Pelle wrapped up the victory in stoppage time to end Spain's reign as European champions which covered the 2008 and 2012 tournaments.

Chiellini's strike was the first goal Spain conceded in a knockout match at a European Championship or World Cup since Zinedine Zidane scored for France at the 2006 World Cup.

Spain's best chances in the last 16 tie came late in the game when goalkeeper Gianluigi Buffon parried strikes by Andres Iniesta and Gerard Pique but Italy deserved their win.

(Reporting by Julien Pretot; Editing by Ken Ferris)