Johann Gudmundsson, the former Watford and Iceland midfielder, says the Nordic nation are ‘beyond miracles’ after knocking England out of the European Championships last night.

Ragnar Sigurdsson bundled home an equaliser 38 seconds after England had gone in front from a Wayne Rooney penalty. Shortly after, Kolbeinn Sigthorsson’s weak effort squirmed through the palms of Joe Hart to give a nation of just 330,000 the most famous scalp in their history.

Iceland, who will now face hosts France in the quarter-finals, lost 6-1 to England in 2004 as the Three Lions prepared for the European Championships in Portugal.

Gudmundsson, who made 26 appearances for the Hornets between 1998 and 2001, was a substitute that day while fans’ favourite Heidar Helguson scored the minnows’ consolation goal with a trademark header.

In 12 years since, Iceland have narrowly missed out on qualification for the 2014 World Cup and reached their first European Championships, beating Austria and England - as well as drawing with Portugal - en-route to the last eight.

“It’s unbelievable,” said Gudmundsson, now 38 and playing for Keflavik in the Icelandic Premier Division. “People don’t really understand what is happening. It’s so surreal. Nobody has really taken it in. It wasn’t supposed to happen. It was a miracle just getting to the tournament, now we’re beyond miracles.

“People went out onto the streets [at full time]. The car horns were going off and there were people running with flags. It was an unbelievable atmosphere. We’re such a small nation and this happening brings everyone together.

“We’ve been getting very good results for the last two years so we knew we could do it. But we had to have a little bit of luck and everything had to click. The defence had to be very solid.

"When England scored everyone thought it was over and we would lose 4-0. We felt if we could keep a clean sheet for half an hour we would have a chance. To concede first and win is unreal.”

Watford Observer:

Lars Lagerback and Heimir Hallgrímsson’s side will now face underwhelming hosts France for a place in the last four. Victory is improbable against a side containing Dimitri Payet, Antoine Griezmann and Paul Pogba, but Gudmundsson isn’t writing his compatriots off just yet.

“Whatever happens it is just a bonus,” hs said. “We’re playing France in France. It will be even more of a miracle if we beat France than beating England. If we lose we have still won really. The players have won our hearts. I don’t think anyone is expecting us to win.”

There will be more from Gudmundsson in this week’s Watford Observer.