Argentina set up a World Cup quarterfinal showdown with Germany on Sunday after defeating Mexico 3-1 in an entertaining second round clash at Soccer City Stadium.

Carlos Tevez scored twice - once clearly offside while Gonzalo Higuain capitalized on a defensive error to top the tournament goalscorers with four in four matches.

Earlier Sunday, Germany beat England 4-1 but that game was also mired in controversy after the referee ruled out a clear goal from England midfielder Frank Lampard with the score at 2-1.

Argentina coach Diego Maradona was pleased with the win, but admitted Germany would be a step up from the hard-working Mexicans.

"I feel like pulling on the jersey and playing myself," said Maradona.

"We know Germany are a different team to the side we faced in Mexico. They are stronger, but we will field the right players to beat them."

Argentina went ahead on 26 minutes when Tevez headed into an empty net from close range after Lionel Messi had latched onto a loose ball toward goal. TV Replays showed Tevez to be offside, but Italian referee Roberto Rosetti allowed the goal to stand despite protests from the Mexicans.

"I don't want to say much about the referee, but after the goal - which was clearly offside - we lost our concentration," said Mexico coach Javier Aguirre.