Brazilian striker Romario reacts in despair after his team could only manage a draw. (Reuters)

Brazil, who suffered a shock defeat against Ecuador last month, were jeered off the field by the 50,000 crowd at the Morumbi stadium after dropping to fourth in the South American group -- below Argentina, Paraguay and Ecuador.

Peru remained seventh and only have a remote chance of reaching the finals in Japan and South Korea next year.

Veteran striker Romario put Brazil ahead after 66 minutes but Peru stunned the four-times world champions 13 minutes later when defender Juan Pajuelo headed the equaliser.

Before a disbelieving crowd Peru finished the game on top, threatening to snatch a late winner which would have handed Brazil a first-ever home defeat in a World Cup qualifier.

The result left a cloud hanging over coach Emerson Leao, who has only been in charge for five games. Brazil's proud record of being the only country to have played in the finals of every World Cup is also in danger.

The top four teams in the group qualify and the fifth plays off against the winners of the Oceania region.

"It's not an easy moment but we are still part of the group which will qualify," said Romario. "Nothing is easy anymore. There's no longer that great respect for us that there was before."

Brazil made sweeping changes in an attempt to reverse a run of results which has also seen defeats in Chile and Paraguay.

They dropped captain Rivaldo and gave first caps to Alessandro, Ewerthon and Leomar. By the time Washington and Mineiro had come on as substitutes in the second half, they had five players making their international debuts.

Brazil struggled against a well-organised Peru defence and their strikers, Romario especially, were repeatedly caught offside early on.

Brazil took 31 minutes to produce their first shot when a Marcelinho Carioca free kick was tipped over by Miguel Miranda. Leomar and Marcelinho both came close just before halftime but were defied by Miranda.

The home side improved after the break after bringing on Juninho Paulista in midfield.

Ricardinho and Ewerthon both had good efforts before Romario struck, beating the offside trap and rounding Miranda to score his eighth goal of the competition after Vampeta had chipped the ball over the defence.

The relief was evident but short-lived.

Eleven minutes from time, Pajuelo rose above a static defence to head in the equaliser.

Brazil were twice close to snatching a winner.

Miranda brilliantly tipped a Washington free kick onto the crossbar and then defied Paulista after he broke through the defence.

At the other end Andres Mendoza, a constant menace to the Brazil defence after coming on at halftime, nearly snatched a late winner after a breakaway but his shot was blocked by goalkeeper Rogerio Ceni.

The first jeers from the notoriously fickle Sao Paulo crowd began to be heard after 25 minutes and by halftime they were chanting "Ole" as Peru passed the ball around. After Peru equalised they hurled Brazil flags onto the pitch in protest.