The All Whites took a shocking lead through Shane Smeltz in the seventh minute only for Vincenzo Laquinta to level through a penalty later in the first half. Riccardo Montolivo hit the post for Italy in the 27th, and Vincenzo Laquinta equalized two minutes later with a penalty.
The draw puts both teams on two points with just a match remaining.
The Kiwis will play group leaders Paraguay while the Italians will play bottom side Slovakia on Thursday.
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