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From BBC.co.uk:

But what looked a desperately poor decision was, in fact, a brilliant piece of officiating, according to the chairman of Austria's refereeing commission Gerhard Kapl.

Kapl said Van Nistelrooy was played onside by Italy's Christian Panucci, who had been injured seconds earlier and was lying behind the goal when the Dutch striker scored.

He said the goal was "100% correct, without any doubt", quoting article 11.4.1. of the refereeing code that states "an opposing player cannot be offside when one of the last two defenders has left the field of play" - as in the case of Panucci.