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MONTEVIDEO, July 1 (Reuters) - Uruguay dealt another blow to Brazil's World Cup hopes with a controversial 1-0 win in a key qualifying match on Sunday.

Federico Magallanes converted a 32nd-minute penalty to take Uruguay level on points with Brazil in the South American qualifying group but the visitors had what appeared a legitimate goal disallowed five minutes from time.

A long-range free kick from Barcelona's Rivaldo was held by goalkeeper Fabian Carini, who appeared to carry the ball over the line as he fell backwards but referee Hugh Dallas waved play on.

Brazil, who lost as Luiz Felipe Scolari made his debut as their third coach in less than one year, remained fourth in the qualifying group with 21 points, the same as fifth-placed Uruguay.

Four teams qualify, with the fifth playing off against Oceania region winners Australia.

But with a difficult run-in, Brazil's record as the only country to have played at every World Cup is in danger.