Uruguay captain Diego Lugano cut an upbeat figure on Sunday despite his side's shock 3-1 defeat by Costa Rica the day before.

The 33-year-old admitted his side have their backs to the wall but said qualification for the knock-out rounds is not beyond their capabilities.

The defeat to Group D minnows Costa Rica, coupled with England's 2-1 reverse against Italy, means Thursday's clash in Sao Paulo between the two pointless sides is one neither can afford to lose.

"If it was difficult before, now it's much more difficult, but not impossible. It will depend on what we can overcome," the West Bromwich Albion defender said on Twitter about Uruguay's qualification hopes.

"What happened is within the realm of probability. Costa Rica deserved it and we made mistakes. There is a lot we can correct and improve on."

Looking forward to their next match, Lugano said the team would never give up.

"Now what we have to do is get back up and keep fighting."