Inter Miami will take on PSG in the round of 16 while Botafogo face Palmeiras in a clash of Brazilian clubs
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Paris Saint-Germain beat Seattle Sounders to advance to the last 16 of the Club World Cup but Atletico Madrid bowed out despite a late 1-0 win over Botafogo.
The European champions went into their final Group B match at risk of elimination following a shock loss to the Brazilian side, but goals from Kvicha Kvaratskhelia and Achraf Hakimi proved enough to top the group.
Atletico, thumped 4-0 by PSG in their opening match, needed to win by three clear goals to progress but a late winner from substitute Antoine Griezmann was not enough and it was Botafogo who reached the next stage.
PSG's progression was not without a scare as Seattle started well at their own Lumen Stadium and could have grabbed a shock lead when Jesus Ferreira almost punished goalkeeper Gianluigi Donnarumma for a rare mistake.
Kvaratskhelia was fortunate to deflect a Vitinha effort into the net in the 35th minute and Hakimi added a second in the 66th minute on the end of a sweeping attacking move moments after Obed Vargas had come close to equalising.
Atletico struggled to assert themselves against Botafogo with keeper Jan Oblak forced into good saves to deny Jefferson Savarino and Igor Jesus.
Griezmann found the net in the 87th minute when he swept home Julian Alvarez's low cross from the left but it was not enough and Botafogo will face Palmeiras at the next stage after the Brazilian side's 2-2 draw with Inter Miami.
Atletico Madrid are out of the Club World Cup
Atletico Madrid are out of the Club World Cup (AP)
Miami came close to finishing top of Group B after goals from Tadeo Allende and Luis Suarez put the MLS side up 2-0.
But their hopes were dashed in a matter of minutes as Paulinho and Mauricio struck in the 80th and 87th minutes.
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The draw meant Miami were forced to settle for second place in the group, with Lionel Messi's side taking on the veteran's former team PSG in the next round.
A hat-trick from striker Wessam Ali was not enough for Al Ahly as a 4-4 draw with FC Porto ensured both sides were knocked out.
After Al Ahly took a 2-1 lead into the half-time break, a flurry of goals early in the second period paved the way for a thrilling finish at MetLife Stadium.
Ali nabbed his third in between goals for William Gomes and Samu Aghehowa to bring the scores level at 3-3, until Mohamed Romdhane found the back of the net in the 64th minute to put Al Ahly on the verge of victory.
Pepe's 89th-minute goal prevented the Egyptian side from securing the win needed to have a chance of qualifying.
PA
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