VIDEO: We'll be underdogs in the quarter-finals against the Pumas or the All Blacks - Joe Schmidt

Ireland were reliant on a try-saving tackle from Peter O'Mahony on Josh Furno to preserve their lead in the second half after a spirited display from Jacques Brunel's side, inspired by Sergio Parisse.

Ireland led 10-6 at the break thanks to a try from Keith Earls following a lineout steal from O'Mahony and a terrific offload from Robbie Henshaw.

Ireland diced with danger, pulling down an Italy maul to allow Allan to post his third penalty and cut Ireland's lead to a solitary point after the break.

Two quick penalties from Sexton eased the pressure before O'Mahony's heroics.

Combative Munster flanker O'Mahony was sin-binned with nine nervy minutes to play for charging shoulder-first into a ruck, with Italy just a converted try behind.

Ireland held on to claim the victory but Schmidt was disappointed by Ireland's loose play.

"They have a very good collection of individuals that came together and made it very tough for us today," he told TV3

"I think we were a little bit loose with the ball and it gave them energy and confidence and they almost made us pay.

"I was worried before the game, I'm perpetually worried and with good reason. We can get lulled into a false sense of security after playing two Tier 2 teams and having the opportunity to get some really decent scoreboard pressure early in the game and manage the rest of the game effectively.

"When it didn't happen today, as we suspected it might not, we almost put pressure on ourselves and were a little bit lucky to escape.

"It was a dogfight but there was a fair bit of width to that dogfight.

"When you see a guy of 6ft7" almost going over in the corner like Josh Furno did, thankfully Peter O'Mahony did just enough to get him into touch.

"We were stretched at times.

"Even the try came a bit too easy in the first half and suddenly we maybe switched off and believed things would happen rather than us making it happen."

Ireland face France in Cardiff to fight out top spot in Pool D, with the winners likely to take on Argentina in the last eight but the Kiwi believes Ireland will be underdogs regardless of who we meet in the last eight.

"In the end we've qualified, I don't think either of the opposition we'll have in the quarter-final will be easy at all," he added.

"I think they will both be favourite to beat us. I'll guess we'll just try to keep it one week at a time.

"We'll try and do things as best we can against France and see how it works out."