كتب : وكالات
Villa, who took his scoring tally to five goals, netted what turned out to be the winner seven minutes from time.
It's the first time for Spain to go beyond the World Cup quarter-finals.
They reached the last four in the 1950 World Cup. The competition consisted of four groups back then.
The winner of each group qualified for the final round, which was also in the form of a four-team group.
Eventless
The game was by far eventless, with both sides wasting several clear-cut opportunities and two penalty kicks.
Paraguay's Jonathan Santana tried his luck seconds after the kickoff only to see his low shot blocked by Iker Casillas.
Apart from Santana's attempt the match's start was quite dull, thanks to both teams' cautiousness.
The game's tempo was notably stepped up midway through the first half.
Xavi Hernandez could have given Spain the lead on minute from the half-hour mark but saw his delightful volley go inches over the bar.
Five minutes later, Paraguay's Santana was close to finishing off a neat counter attack but failed to connect with a diagonal cross.
Nelson Valdez had a goal disallowed through offside shortly afterwards.
Two Spot Kicks
Near the hour mark Oscar Cardozo squandered a spot kick, when Iker Casillas produced a magnificent save.
A couple of minutes later, Antolin Alcaraz was adjudged to have brought down Villa in the area.
Xabi Alonso converted the penalty kick on the hour mark but the referee ordered to repeat it.
Justo Villar blocked Alonso's second shot to keep a clean sheet for a while further, but Spain kept the upper hand.
Andres Iniesta could have broken the deadlock later with a powerful shot but it went wide.
Villa eventually put Spain ahead.
A close-range drive from Francesc Fabergas hit the post before the ball fell into the path of Villa, whose follow-up effort touched both woodworks before settling into the net.