Crowds go wild in Melbourne after Italy crowned 2020 Euro Cup champions

Crowds and celebrations have exploded on Melbourne's Lygon Street after Italy was crowned the winner of the 2020 Euro Cup.

Hundreds of football fans packed out Melbourne's Italian precinct to watch the Grand Final match early this morning.

When Italy beat England in a dramatic penalty shootout about 8am, downing them 3-2 after a 1-1 deadlock, crowds went wild.

LIVE UPDATES: Italy claims 2020 European championship

Flares were ignited and screams of excitement roared through Carlton streets as fans celebrated the win.

Today reporter Izabella Staskowski was at the scene and said crowds were going "absolutely wild".

"We had flares going off everywhere and fireworks," she said.

"Everyone is celebrating now and getting out into the street.

"This is just a quarter of what it was like just a moment ago, people are dancing and partying. It's absolutely going off."

Fans had to resort to watching the game on their phones after the connection was lost on the big screen, but that did not stop the celebrations.

"It is electric. I don't think these guys have ever stopped - are going to stop partying any time soon. It's amazing," Staskowski said.

The Euro Cup win is Italy's first since 1968.