From being in control of the group, Ireland's qualification hopes are now out of their hands following a 1-0 defeat at Dalymount Park this evening to a German side that finished with nine men.
Ireland must beat Hungary at United Park on Saturday and hope that Bulgaria can take at least a point from the Germans at Belfield.
Germany got their goal on 17th minute from a penalty when Sebastian Tyrala was tripped by Simon Madden and Anis Ben-Hatira scored emphatically from the spot.
Ireland responded well. Anthony Stokes rustled the side netting with a terrific shot from long range before the Sunderland striker cleverly chested down Keith Treacy’s corner for defender Shane Lowry to volley against the outside of a German post.
But Ireland could have been 2-0 down on 38 minutes but for a dreadful miss by Daniel Brosinski who sliced his volley wide from six yards.
Cillian Sheridan came on for the second half and made an instant impact - German captain Alexander Eberlein shown a straight red card for bringing down the big Celtic striker who looked clean through on goal on 54.
German keeper Martin Maennell then came into his own with vital stops late on from Alan Judge, Stokes and Alan Power before they had goalscorer Ben-Hatari sent off for a second booking in stoppage time.
Ireland: Henderson (Aston Villa); Madden (Leeds United), Lowry (Aston Villa), Spillane (Norwich City), Nolan (Blackburn Rovers); Judge (Blackburn Rovers), Ryan (Liverpool), Power (Nottingham Forest), Treacy (Blackburn Rovers); Stokes (Sunderland), Rooney (Stokes City). Subs: Sheridan (Celtic) for Treacy (half-time), Cassidy (Bolton Wanderers) for Ryan (75 mins.), Downes (Everton) for Rooney (81 mins.)
Germany: Maennel; Boetang, Eberlein, Howedes, Feick; Brosinski, Sam, Konrad, Sauter; Ben-Hatira, Tyrala. Subs: Kruse for Sam (half-time), Schmuedebach for Brosinski (56 mins.), Falkenberg for Tyrala (71 mins.).
Referee: P Tagliavento (Italy)