A sublime free-kick from James Ward-Prowse was too little, too late for England as they were beaten 2-1 by Brazil in their second Group B game at the Toulon tournament.
The Southampton midfielder struck with a sweet curling effort that beat keeper Marcos inside his near post late on.
England, who beat Qatar in their opener, went behind early in the game when Manchester United defender Michael Keane failed to clear inside his penalty area and striker Alisson bundled in.
And Brazil added a second just after the break when Lucas Silva capitalised on a poor defensive back-pass from Leicester’s Liam Moore.
The ball bobbled cruelly for Moore as he made that stray pass, and boss Gareth Southgate may rue a poor pitch in Saint-Raphael, but England were to blame for being poor defensively.
Keane, United’s highly-rated centre-back, made two meagre attempts to get rid of the danger as Alisson burst into the box and made him pay.
Norwich man Nathan Redmond threatened from wide areas but England created few clear-cut chances and they were lucky not to concede a penalty before half-time when Moore seemed to handle inside the box.
Charlton’s Jordan Cousins flashed a cross-shot which was gathered by Marcos before Silva gratefully gobbled up Moore’s mistake to put Brazil, who beat South Korea and Colombia in their opening games, 2-0 up on 47 minutes.
England needed Ward-Prowse to provide a moment of brilliance in an otherwise frustrating performance, showing his Premier League class with a fine set-piece late on, and they now need to beat South Korea and Colombia to qualify for the knock-out stages.
Meanwhile, a late double from Lewis Baker helped England Under-19s come back from a goal down and secure a 2-1 win against Scotland in their second Euro 2014 Elite Round qualifier at Burton's Pirelli Stadium.
Scotland went ahead through John Soutter early in the second half but Chelsea midfielder Baker scored in the 76th and 82nd minutes to rescue England.