The match had finished 1-1 after extra-time, with Neymar having put Brazil ahead with a superb free kick in the 27th minute before Germany skipper Maximilian Meyer equalized with a fine strike just before the hour to force the extra period.
There were no goals in extra time so the game went to a shootout with Germany's Nils Petersen the first to miss with their fifth spot kick. Neymar then stepped up to coolly fire home the title winner and send the capacity crowd wild.
Brazil had lost the Olympic final three times in 1984, 1988 and 2012 but have now won the only international title to elude them by beating a country who had humiliated them 7-1 in the World Cup semi-finals on home soil in 2014.
A unified Germany are now the only World Cup winners never to have won the Olympic gold medal.
REUTERS
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