England's hopes of qualifying for UEFA EURO 2008 are hanging by a slender thread after Steve McClaren's side lost 2-1 against Russia on Wednesday.

Despite taking the lead through Wayne Rooney's brilliant 29th minute volley, England collapsed after the break as Roman Pavlyuchenko scored twice for the hosts at the Luzhniki Stadium in Moscow.

England are two points ahead of Russia in Group E but Guus Hiddink's team have a game in hand and will qualify ahead of England if they win their last two matches away to Israel and Andorra.

McClaren's men, who face Croatia in their final fixture, would have clinched qualification with a win. They were on course when Michael Owen flicked on Micah Richards's long punt and Rooney controlled on his chest before lashing a brilliant strike past Vladimir Gabulov.

But Spanish referee Luis Medina Cantalejo ruled that Rooney's 69th minute tug on Konstantin Zyrianov was inside the area. Television replays suggested otherwise, but substitute Pavlyuchenko stepped up to convert the spot-kick

Russia laid seige to the English goal after that and snatched the winner in the 72nd minute as Zyrianov's shot was parried by Paul Robinson and Pavlyuchenko tapped in.