A David Beckham penalty within two minutes of the half-time whistle was all England needed to keep their World Cup dream alive.
The decisive shot came after a dramatic first half of challenges, cautions and heart-stopping moments.
England were awarded the penalty when Michael Owen was felled inside the area by Mauricio Pochettino.
It was a lead that captain Beckham and his side managed to maintain through the second half to snatch victory.
Defeat in Sapporo would have left England's fate at the mercy of Sweden and Argentina drawing their final game.
England kicked off in an ear-splitting atmosphere but it was the Argentinians who looked more threatening in the early stages.
Soon, though, they started conceding a series of free-kicks and one late challenge by Batistuta earned the striker a yellow card from referee Pierluigi Collina.
Samuel brought down Owen in a dangerous position on the left.
Batistuta then led with his arm and conceded another free kick some 35 yards out and Beckham was over-ambitious in attempting a shot which cannoned off the defensive wall.
The challenges were certainly flying in and Argentinian keeper Pablo Cavallero needed extensive treatment after he was on the receiving end of a heavy challenge from Rio Ferdinand.
Eriksson was forced into a midfield reshuffle after 18 minutes when Owen Hargreaves, who had picked up an early knock on his left leg, limped out of the action and was replaced by Trevor Sinclair.
After 24 minutes Owen came within inches of giving England the lead, only to be denied by the woodwork.
Butt found him in a yard of space and he hit his low shot through the legs of Samuel across goal with Cavallero stranded.
But Owen could only look to the heavens in disbelief as his shot cannoned back off the post into play with no one on hand to apply the finishing touch.
The challenges carried on flying in from both sides and Ashley Cole became the first English player to be yellow-carded for a touchline challenge on Ortega in the 29th minute.
Gonzalez volleyed over when well placed after Batistuta had flicked on a cross from Zanetti.
Gonzalez then needed treatment as he was left with blood streaming from his mouth after being caught in an aerial challenge by Beckham.
But on 43 minutes England got the breakthrough they desperately needed via Beckham's no-messing spot kick.
Owen was brought down in the area by Pochettino after he had cut inside and had his legs taken from under him.
Collina immediately pointed to the spot and up stepped Beckham to drill his shot low and hard straight down the centre of the goal.
It was the cue for the Manchester United star to run to the corner flag and clutch his England shirt in the direction of the fans.
Argentina kicked off the second half without their captain, Juan Sebastian Veron. Valencia forward Pablo Aimar took his place.
England kept the pressure on Argentina in the early part of the second half, as first Scholes and then Owen drove at goal.
Scholes' shot, a right-footed volley, was punched clear by Cavallero while Owen, who came within eight yards of the goal, fired wide of the far post.
It was a superb start and England continued forcing the pace.
Batistuta tried for an equaliser but was well over the crossbar.
Owen was soon in the thick of the action and worrying the Argentinian defence but never quite managed to hit the net.
Heskey came off on 56 minutes, to be replaced by Teddy Sheringham.
Argentina made a substitution of their own, bringing on Crespo for Batistuta.
A few minutes later they used the last of their substitutes, Claudio Lopez taking Kily Gonzalez' place.
Sinclair was soon harrying the Argentine keeper after an amazing run from the halfway line, but Cavallero went low to stop it.
As the half wore on Argentina rallied and started to look more threatening.
But goalie Seaman grabbed an Ortega cross out of the path of Sorin as England fought on.
And the veteran keeper was England's saviour again on 78 minutes, saving a dangerous header from Pochettino.
Owen, who had earlier looked so deadly, was replaced soon afterwards by Wayne Bridge.
Argentina continued fighting, and though a shot from Aimar soared high over the bar it provided a warning against complacency.
In response England opted for a defensive strategy, aiming to hold on to their lead at all costs.
With only a few more tense minutes to go, it was a strategy that kept England on track to stay in the tournament.
Argentina: Cavallero, Sorin, Samuel, Pocchettino, Placente, Zanetti, Simeone, Veron, Gonzalez, Ortega, Batistuta. Subs: Aimar, Almeyda, Ayala, Bonano, Burgos, Caniggia, Chamot, Crespo, Gallardo, Husain, Claudio Lopez, Gustavo Lopez.
Referee: Pierluigi Collina (Italy).
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