Luca Toni put the Italians ahead after just 72 seconds before Barry Ferguson bundled home to equalise with 25 minutes left, but Christian Panucci's injury-time header sealed the Scots' fate.

The winner came after a foul was awarded against Alan Hutton - but McLeish was adamant an injustice had been done.

"We didn't deserve that, to lose that game, we battered them in the second half and they were dead men walking at the end," he told Sky Sports 1.

"The set-piece that led to their second goal was an unbelievable decision.

"Alan Hutton was in control of the ball and their guy battered him. How can that be a free-kick to Italy?

"They got most 50-50s and we expected that."

But despite today's heartbreak, McLeish insisted his players should be proud of their efforts both at Hampden Park and throughout their campaign.

"I'm proud of these players," he added.

"That first goal was so unlike us. It took the power away from us for a spell.

"We were making chances, we were imaginative, but unfortunately it didn't fall for us.

"It was a terrific effort and you could see the fans' appreciation after the game.

"The Italians know they were a lucky team to leave Hampden Park with a victory.

"We've got to take heart from this and confidence."

Manager Alex McLeish was furious with Spanish referee Manuel Enrique Mejuto Gonzalez.

"We didn't deserve that, to lose that game, we battered them in the second half and they were dead men walking at the end," he told Sky Sports 1.

"The set-piece that led to their second goal was an unbelievable decision.

"Alan Hutton was in control of the ball and their guy battered him. How can that be a free-kick to Italy?

"They got most 50-50s and we expected that."

But despite today's heartbreak, McLeish insisted his players should be proud of their efforts both at Hampden Park and throughout their campaign.

"I'm proud of these players," he added.

"That first goal was so unlike us. It took the power away from us for a spell.

"We were making chances, we were imaginative, but unfortunately it didn't fall for us.

"It was a terrific effort and you could see the fans' appreciation after the game.

"The Italians know they were a lucky team to leave Hampden Park with a victory.

"We've got to take heart from this and confidence."