Brazil's players trudge off after exiting the 2015 Copa America on penalties to Paraguay.
CNN  — 

Brazil’s hopes of restoring national pride after its disastrous 2014 World Cup exit were cruelly dashed after losing a penalty shootout to Paraquay to exit the Copa America Saturday at the quarterfinal stage.

The match had ended 1-1 in regulation play before underdog Paraguay won the shootout 4-3 to send Dunga’s men home. It was a repeat of the result when the two teams met at the 2011 Copa, also in the last eight.

Brazil went into South America’s premier international tournament off the back of 10 straight wins after its humiliating 7-1 defeat to Germany in the semifinals of the World Cup on home soil, but it has disappointed in Chile.

A 1-0 defeat to Colombia in the group stages and the ban on star player Neymar after he received a needless red card, preceded its exit.

Dunga, in his second spell in charge of the Selecao, tried to put a positive spin on the defeat, but will face criticism at home.

“It is preparation, a good experience,” he told gathered reporters.

“We would like to win but it is a great lesson, learning for the highest purpose of the tie as we look at the World Cup in 2018.”

The former 1994 World Cup winning captain also blamed a virus which he claimed had left his squad feeling under the weather.

“I’m not making excuses, but around 15 players had viruses which limited our training,” Dunga said.

Brazil certainly gave a lackluster performance after taking a 15th minute lead through a sparkling goal from Robinho and dominating the first half.

Dani Alves had set up Robinho for his 28th international goal and more might have followed, but Brazil ran out of steam after the break as Paraguay pushed forward.

In the 72nd minute, Brazil defender Thiago Silva handled in the area after a mix-up between himself and Alves.

FC Basel striker Derlis Gonzalez coolly slotted home the penalty kick for Paraguay and was also to prove the hero in the penalty shootout.

Sorry misses from Brazil’s Everton Ribeiro and Douglas Costa left Paraguay captain Roque Santa Cruz with the chance to seal victory with his team’s fourth kick, but he hit his effort high over the bar.

Gonzalez though made no mistake with the next opportunity to seal the victory and send Brazil home.

“To see my teammates with tears in their eyes, you can’t put a price on that,” Gonzalez said.

Lionel Messi and his Argentina team next await Paraguay in the semifinals Tuesday with host Chile taking on Peru 24 hours earlier.

The final takes place in Santiago Saturday July 4.