WATCH: England fans in Sunderland show disappointment as team go out of Euro 2016
Roy Hodgson's men went in 2-1 at half-time, but could not get back level.
Fans in Sunderland's Park Lane watched the match on a giant screen set up by city business bosses for the tournament.
A huge groan of despair went up as the final whistle blew.
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Hide AdHodgson has now resigned from his post after more than four years in the job.
England fan Shaun Wathey, 28, who lives near Sunderland city centre, said: "With this squad we should be doing a lot better.
"We've got young players and keep the ball well but it just hasn't worked.
"Harry Kane hasn't turned up but others haven't played well either. It's typical England."