Chile are a step closer to South Africa 2010 after they beat South American World Cup qualifying group leaders Paraguay 2-0 in Asuncion.

Matias Fernandez opened the scoring after just 14 minutes with a shot form the edge of the box, and nearly doubled the lead 10 minutes later when he forced goalkeeper Justo Villar into a great save from his free kick.

Paraguay nearly drew level on the half-hour mark when Nelson Haedo Valdez' header was cleared off the line by Gary Medel.

But shortly after the break Chile consolidated their lead with a headed effort from Humberto Suazo.

Paraguay remain top of the standings with 24 points alongside Brazil, who earlier today destroyed Uruguay 4-0 in Montevideo.

Chile move into third place with the win, one behind the leaders and one in front of Argentina, who defeated Colombia 1-0 in Buenos Aires.