Rugby powerhouse New Zealand were knocked out of the inaugural Olympic sevens tournament in the quarter-finals on Wednesday after a 12-7 loss to top seeds Fiji.

Gifted a tournament lifeline when the Fijians beat the United States earlier on day two, the 12-times world sevens series champions were unable to take advantage of their reprieve in a breathless encounter at a wet Deodoro Stadium.

Fiji skipper Osea Kolinisau finished a brilliant length-of-the-field try to open the game many thought would take place in the final and Jerry Tuwai skipped through the All Blacks defence to add a second for the Pacific islanders.

Gillies Kaka had replied for New Zealand off a chip and chase while his team mate Rieko Ioane was in the sin-bin but the Fijians were able to hold on at the end to book a semi-final against Japan, who beat France 12-7 in their quarter-final clash.