Paraguay got the better of Chile in a friendly match played between the two nations on Wednesday.
The five players sent home from the Chile squad for an alleged breach of discipline have strenuously deined coach Claudio Borghi's claims against them.
Chile have dropped five players from their squad for two World Cup qualifiers after they breached a team curfew, national team boss Claudio Borghi has confirmed.
Eight-time Copa America winners Brazil were left stunned and eliminated as they failed to convert a single penalty in their shootout against Paraguay, losing it 2-0.
Chile have topped Group C in the Copa America after sealing their quarter-final spot with a dramatic 1-0 victory over Peru in their final group match in Mendoza.
Chile came back in their Copa America Group C clash with Uruguay on Friday evening to earn a 1-1 draw in Mendoza.
Uruguay were held to a 1-1 draw by Peru as Group C action in the 2011 Copa America commenced in San Juan on Monday.
Paraguay and Chile completed their Copa America preparations with a goalless draw in Asuncion.
Chile coach Claudio Borghi will allow Alexis Sanchez to leave La Roja's training camp for the Copa America in order to sign for Barcelona.
In-demand winger Alexi Sanchez has been named in the Chile squad for warm-up internationals ahead of the Copa America.