Italy andIceland were forced to settle for a point each as their hopes of progressing to the quarter-finals of Euro 2022, were left on a knife-edge.
The game was played at Manchester City's Academy Stadium.
For the second game in a row, Iceland were unable to hold on to their lead as Italy came back to earn a point.
Italy's Barbara Bonansea hit a low shot that hit the inside of the post and could have been worse forIceland.
In their third and final game of the group, France will face off againstIceland, who have two points from two games.
They had put themselves in a strong position to reach the quarter-finals for the second time when Vilhjalmsdottir struck with a sliced shot after Sveerins Jane Jonsdottir's long throw into the box caught out Italy's defense.
Italy started slowly at the World Cup, but improved as Arianna Caruso forced the save.
Bergamaschi equalized after meeting Bonansea's pull-back after the Azzurre increased the pressure.
Italy's hopes of progressing to the knockout phase now depend on a tense final group game back at the Academy Stadium against Belgium on Monday.
Despite being one of the smallest countries at the Euros, the whole country has come together to support the team.
The president was at the game to see the team ranked 14th in the world play Italy.
They failed to hold on to the lead and will be disappointed.
They had 23 attempts against Belgium, but were unable to get a win. They failed to take advantage of a strong start as Italy rebounded from a crushing defeat to France.