The Red Devils were tipped to beat the Azzurri due to the rich attacking options, but lacked every inspiration against the Italians.
Italy started the game on the front foot and thought they have had a dream kick off when Leonardo Bonucci gave them the lead but it was ruled offside by VAR.
Roberto Mancini’s men finally broke the deadlock on 31 minutes through Inter Milan midfielder Nicolo Barella before Lorenzo Insigne doubled Italy’s advantage on the cusp of halftime, but Belgium fought back and articulated a swift response before the interval.
The Italians remained compact and resolute throughout the second half as they book a date with Spain in the semi-final.
Speaking to the media after the game, the Manchester City man said Belgium did what they can to beat Italy.
“I think we tried everything to win that match,” De Bruyne told BBC after the match. “They scored a fantastic goal, but the first one may have been a mistake on our part.
“They had more possession, and the ball didn’t go in for us, which is a shame. Getting eliminated is always a disappointment.”
De Bruyne’s team-mate Thibaut Courtois lamented Belgium’s defeat but admitted Italy deserved the win.
“This hits hard,” Courtois said. “But we knew it was going to be a tough game.
“We had two opportunities but their keeper made a good save and I think we gave the first goal away a bit too easily.
“It really could have gone either way, but Italy deserved to win here.”
