Earlier, Colombia beat Ecuador, 2-1, to top the Group with a 100 percent record. Second-placed Argentina and Uruguay, in third, also qualified for the last eight.

Palermo's strike -- from open play -- put his side 2-0 ahead and restored his own reputation after he had become the first man to miss three penalties in one match at this level in his country's previous game with Colombia.

The Boca Juniors striker, dubbed El Loco (the crazy one), celebrated his goal with gusto and was mobbed by his teammates as he screamed his delight into the zoom lens of a pitchside photographer before briefly leaving the field for treatment to a black eye.

Argentina were much criticised after the showing against Colombia and -- clearly stung-- made a storming start.

It only took 67 seconds for them to take the lead with Cristian Gonzalez striking a brilliant freekick past Uruguay goalkeeper Hector Carini with his left foot after Juan Riquelme had changed the angle with a backheel.

All the penetrating football was coming from Argentina with Uruguay's only first-half efforts on goal coming from long-range shots from Walter Coelho, Andres Fleurquin and Marcelo Zalayeta.

Palermo was then booked for diving as the game started to lose its edge.

After 56 minutes Palermo took his cue to notch his third goal of the tournament. His Boca team-mate Riquelme did the spade work drawing the defenders and setting up Palermo to score with a rising shot with his favoured left foot.

With the second placed team in the Group certain to meet Brazil in the last eight many had suspected that neither team would have much motivation to win this game.

But that overlooked the history between the two river plate countries. Two of the oldest rivals in worldfootball they have a joint record 14 Copa America titles each.

Colombia boss Javier Alvarez saw his side keep up their winning habit despite making several changes with a view to avoiding suspensions or injuries to his key men for the quarter-finals.

Among the recalled players was goalkeeper Rene Higuita, the 1990 World Cup veteran with the famed `scorpion kick'.

Colombia took the lead after 36 minutes when Ricard played the ball through to Zambrano, who back-heeled to Neider Morantes, who fired home off Cevallos' right-hand post.

Just three minutes later Ricard made it two, shrugging off two challenges before firing home.

But after 50 minutes Ecuador reduced arrears when Graziani raced from the halfway line before beating Higuita with a low left foot shot.