Delfouneso was denied a second-half equaliser for England
England were left to rue a controversial decision after losing 1-0 to the Netherlands in their second game at the Under-19 European Championship.
Nathan Delfouneso turned the ball home in the second half, but the referee mistakenly ruled the Aston Villa striker had handled in the build-up.
Steven Berghuis headed home the winner after seven minutes.
England face France in their final group game on Saturday, with a semi-final place still within their grasp.
But France are in ominous form, having all but sealed their progress to the last four with a 5-0 thrashing of Austria in Wednesday's other game.
And Noel Blake's side will need to improve on Wednesday's performance, with their defence a particular area of concern.
Dutch winger Jerson Cabral caused problems for full-back Nathaniel Clyne throughout the game, and it was his cross which was converted by Berghuis to give the Dutch an early lead.
Not long after, Norwich keeper Declan Rudd had to make a smart save from a half-volley by Luc Castaignos, who also had a goal ruled out for offside before half-time.
England improved after a slow start though and were desperately unlucky not to make the score 1-1 when Delfouneso slotted in, only for an erroneous blast of the whistle to halt the celebrations.
Tottenham defender Steven Caulker also came close after brilliant work by substitute Ryan Noble, but the Netherlands held on.
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