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In front of a crowd of nearly 50,000, Sweden took the lead with a 30th-minute penalty by Fridolina Rolfo and doubled their advantage with a powerful strike from Kosovare Asllani just after the hour.
Sarina Wiegman intends to stay put as England boss amidst swirling rumours the serial winner could be tempted into the recently vacated United States manager’s chair.
Ella Toone drove England's opener into the corner of the net in the 36th minute to silence the crowd of 75,784 but Australia captain Sam Kerr brought them back into it with a stunning run and strike from 25 metres out in the 64th minute.
Spain's thrilling victory at Eden Park sets up a showdown in Sydney on Sunday with either Australia or England, who meet in the other semi-final on Wednesday.
Spain take on Sweden and England face co-hosts Australia in the Women’s World Cup semi-finals.
Two self-starting women’s football reporters covering the World Cup have said the women’s game no longer needs to “prove” itself.
Australia now go to Sydney on Wednesday to face the winners of the final last-eight tie between England and Colombia.
Arsenal are 2-0 up in their Premier League opener against Nottingham Forest.