France hung on for dear life to defeat Portugal 1-0 and won the right to meet Italy in the World Cup final on Sunday after a thrilling semi-final in Munich on Wednesday.
Zinedine Zidane made the difference with a cooly struck 33rd minute penalty although Ricardo dove the right way but the Real Madrid star still steered it home.
Portugal threw everything forward in a second-half onslaught but failed to break down the rigid French defence who were superbly marshalled by Lilian Thuram, Willy Sagnol and William Gallas.
The turning point of the match arrived with 12 minutes left in the first-half when Chelsea defender Ricardo Carvalho brought down Thierry Henry just inside the area.
A clever touch by Henry wrong-footed Carvalho who stuck his leg out, and although the Arsenal star reacted theatrically to clear contact, Uruguayan referee Jorge Larrionda had no hesitation in pointing to the spot.
Zidane then did the rest.
The only negative point for France was a foolish yellow card picked up by substitute Louis Saha in the dying minutes which rules him out of the final.
Germany coach Jurgen Klinsmann said it had been a bitter disappointment to concede two late goals against Italy which crushed the host nation's hopes in the World Cup semi-final here on Tuesday.
"It is an enormous disappointment and the mood is very low. It is a bitter pill to concede two goals so near the end," said the 41-year-old.
"I tried to say to them (the players) that they have played fantastically, everyone has pushed themselves to their limits.
"They can take so much from this tournament and they have made the country proud.
"We had our chances to score the first goal and then just before the end they took their chances."
"I don't know if I am going to carry on. I need some time to take on board everything that has happened during this tournament and in the last two years," said Klinsmann, who has his home in California.
"I will talk to my wife about it next week."
The referee who gave Wayne Rooney a fateful red card in the weekend match that saw England crash out of the World Cup has defended his decision.
Speaking to the Times newspaper in Frankfurt, Horacio Elizondo confirmed that he sent off Rooney during Saturday's quarter-final match with Portugal for lashing Ricardo Carvalho with his boot and catching him in the groin.
"It was violent play and therefore he got a red card," said the Argentine referee, who went on to deny that an on-pitch protest from Portugal's Cristiano Ronaldo, a teammate of Rooney's at Manchester United, had swayed him.
"People can say what they want, but this had absolutely no influence," he said.
"For me it was a clear red card, so I didn't react to the Portuguese players. There was pushing and shoving on boh sides, but for me it wasn't a reason to caution anybody."
Cristiano Ronaldo, a hate figure in England after his involvement in Wayne Rooney's sending off, discovered Wednesday that the animosity has spread well beyond English shores.
The Portugal winger was loudly jeered whenever he touched the ball in Portugal's 1-0 semi-final loss to France at Munich's Allianz Arena, a chorus that was relentless from start to finish.
While there was a smattering of England flags and fans in the stadium, the booing came from many of the 66,000 people packed into the impressive complex, with Ronaldo in tears at the end of the game, though that was probably more to do with losing than the personal abuse.
He didn't help himself with several blatant dives, one of which had French coach Raymond Domenech angrily gesturing the international sign for diving from the sidelines to the referee.
Former England striker Alan Shearer, commentating for the BBC, said: "Cristiano Ronaldo's penalty claim was a dive straight away. He flings himself forward."
Italy coach Marcello Lippi said Wednesday that striker Francesco Totti is likely to retire from international football after the World Cup final.
"As far as I'm aware it's 90 per cent he will quit," Lippi said.
"But you have to understand what's going on in his heart and mind before commenting," he added, suggesting there is a small chance the Roma captain will continue for the Azzurri.
Totti had hinted before the tournament he would call time on his international career.
The 29-year-old forward broke his left ankle in February and only returned to action in late May.
He persuaded Lippi to take him to Germany despite his lack of match practice and has not let his coach down.
Totti's performances in the group stages were patchy due to a lack of sharpness, but he was outstanding in the first half of Tuesday's extra-time victory over the host nation in Dortmund.
Italy coach Marcello Lippi said on Tuesday that his team had achieved a dream win over Germany to reach the World Cup final.
Goals in the final minutes of extra-time from Fabio Grosso and substitute Alessandro Del Piero settled a semi-final which appeared to be heading for a penalty shootout.
"It was tough but we are delighted that we have done it. It is a dream, we have achieved something huge here," said the 58-year-old former Juventus coach.
"If either side deserved to win it then it was us. It's a really special moment, fantastic.
"I was so impressed with the enthusiam and the effort from my team and I am so proud of the boys."
Italy will play the winner of Wednesday's Portugal v France semi-final in the final on Sunday in Berlin's Olympic Stadium.
Portugal star Luis Figo reflected on the thin line between success and failure after a penalty by former Real Madrid clubmate Zinedine Zidane sent France through to the World Cup final 1-0 at his own country's expense.
"We are very disappointed. I thought we deserved a better result than this," said Figo, who had a golden opportunity to make it 1-1 but his second-half header after Fabien Barthez comically dropped the ball went over the bar.
"We had more control of the game but we couldn't put away our chances. It is a pity for us as we so wanted a place in the final.
"On the penalty it was hard for me to judge - I couldn't see from where I was. Maybe the referee had a better view.
"I am proud of the team and we want to finish off with a win over Germany," said Figo in allusion to the third-place playoff with Germany which will be his international swansong.
Italy defender Fabio Grosso curled home a dramatic winner in the 118th minute and Alessandro Del Piero sealed the result three minutes later to send Marcello Lippi's side into the World Cup final with a 2-0 extra-time win over stunned Germany on Tuesday in Dortmund.
The match was seemingly heading for penalties after 118 minute of goalless action before Grosso popped up with time running out to turn the match on its head and help send Germany to their first ever defeat in Dortmund.
Italy will now meet either France or Portugal who meet in the second semi-final on Wednesday - in Sunday's final in Berlin.
Costa Rica's World Cup coach Alexandre Guimaraes quit his post Monday after recieving phone threats at his home, he told a press conference.
Guimaraes had a contract with the Central Americans until 2010 but said it was not worth continuing in the job under the threat of violence against him and his family.
"The first sign was in the airport," he said. "If I had not been under police protection I don't know if I would have been here today (Monday) for this press conference."
The Brazilian, a naturalised Costa Rican, said that since his return he had endured the wrath of supporters who blamed him for his country's first round exit in Group A.
Costa Rica lost all three group matches: 4-2 to Germany, 3-0 to Ecuador and 2-1 to Poland.
"I don't want to be held solely responsible and have to hire bodyguards," added Guimaraes.
France striker Thierry Henry said after his nation beat Portugal on Wednesday to reach the World Cup final that he had never listened to the critics who savaged the team when they made a poor start to the tournament.
"It is true that we were not playing well, people were saying we were too old. That was pretty harsh, but as soon as you step it up it works," Henry said.
"We were not listening to it, we were playing as a team. That is what the team is all about."
"We defended like lions. After we got the penalty, the way we defended was great," Henry said.
Lilian Thuram, one of the veterans from the 1998-winning team who came out of international retirement to help France qualify, said the joy of being in the final was just as strong eight years later.
"I am 34 today and I feel like a 10-year-old child who is watching the World Cup on television and thinking it is magnificent.
"I am just saying that I am so lucky. We're in the final and I hope that the party is going to continue because this is just too beautiful," said Thuram, who was named man of the match.
France captain Zinedine Zidane fired home a penalty on 33 minutes to put France 1-0 up at half-time in a highly entertaining semi-final against Portugal on Wednesday in Munich.
Portugal defender Ricardo Carvalho who was at the centre of the Wayne Rooney red card storm made contact with Thierry Henry inside the box and Uruguayan referee Jorge Larrionda had no hesitation in pointing to the spot.
The ever reliable Zidane then kept his nerve to slot home his spotkick despite Ricardo going the right way and coming ever so close to making the save.
Portugal had an immediate reaction and piled forward in search of the equaliser with the lively Cristiano Ronaldo having a blinder on the wings despite being whistled by the fans at every touch in reference to his influence on Rooney's sending-off.
The winner will meet Italy in the final on Sunday in Berlin.
Luis Figo and Cristiano Ronaldo are fit and will start for Portugal as they attempt to make the World Cup final for the first time in their history by beating France on Wednesday in Munich.
Both players had been struggling with injury and news of their recovery is a huge boost to coach Luiz Felipe Scolari, who also welcomes the return of influential midfielder Deco from suspension.
France go into the game at the Allianz Arena unchanged from their victory over Brazil, led by a resurgent Zinedine Zidane who is looking to cap a remarkable career by beating Italy in the final on July 9 in Berlin.
But both sides need to be wary with a cache of players on yellow cards. If they pick up another they will miss the final.
Among those at risk are Zidane, Willy Sagnol, Louis Saha, Lilian Thuram, Patrick Vieira and Franck Ribery.
On the Portugese side, Figo, goalkeeper Ricardo, Ricardo Carvalho and Nuno Valente all need to stay out of referee Jorge Larrionda's book if they want to play on Sunday, should they win here.
Captain Luis Figo is in doubt for Portugal's World Cup semi-final with France while Cristiano Ronaldo is also struggling to regain fitness, coach Luiz Felipe Scolari said Tuesday.
Figo picked up a thigh strain in Portugal's quarter-final win over England and was replaced four minutes from the end of regular time in a match that went to penalties.
Ronaldo, who scored the decisive penalty that ended English dreams, played with a thigh injury he picked up against the Netherlands and complained that the problem slowed him down in the later stages of the match.
"Figo and Cristiano have been training well. They know they have problems and we need to check how they are to see if they can play," said Scolari.
"The possibility is that Cristiano has a bigger chance and Figo a little bit less.
"But we can't say anything before the training session tonight."
France, with six players on a yellow card, are wary of being deliberately wound-up by Portugal in their potentially explosive World Cup semi-final here Wednesday.
William Gallas raised the danger at the eve of match press conference, citing the part played by Portugal winger Cristiano Ronaldo in his Manchester United team-mate Wayne Rooney's sending off on Saturday.
"We saw in their last match against England that Portugal are a team who try to wind up the opposition, so we'll have to have cool heads.
"Look at the Rooney incident, perhaps he deserved to get a red card but we saw how Ronaldo hassled the referee to get him sent off.
"We'll be very attentive as they like to dive a lot, but a lot will depend on how the referee handles it too," the 29-year-old Chelsea defender said.