The leaders of Germany and Britain snuck out of top-level economic summit talks for a key date and watched as the German team thumped England 4-1 in the World Cup, officials said.

British Prime Minister David Cameron and German Chancellor Angela Merkel took a break from the talks by world leaders in Toronto, Canada to watch the second half of the crunch game.

But hope turned to disappointment for Cameron as England slumped out of the tournament being held in South Africa, taking a battering from Germany.

The historic rivalry between the two countries was fuelled in the first half of the match when a goal by England's Frank Lampard which would have levelled the scores was disallowed, despite the ball crossing the goal line.

A British source told reporters that Merkel had conceded to Cameron that Lampard's goal should have counted, a gesture confirmed by the German delegation.

"She's sorry about that, she was very nice about it," the British source added, saying the atmosphere between the two leaders was "very good-natured."

Merkel, meanwhile, did not disguise her delight at the result.

"I am still all excited," she told reporters. "I can only say to the German team, go on like this - it was great. Today everything went perfectly in the heads and in the legs."

She added: "I watched it with Cameron and of course he congratulated us and it was a very nice and sportive atmosphere between the colleagues of the two countries."

Cameron had previously said he would "try not to wrestle her (Merkel) to the ground" if the game went to penalties, as it did the last time the two sides met in the World Cup, in the 1990 semi-final.

On that occasion, which has become one of the most memorable games in English football history, England were beaten on penalties.

World Cup fever has gripped the G20 summit of leaders from the richest and biggest emerging economies, with many televisions in delegation hotels and the media center tuned to the games.

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