Peter Taylor's side took a 1-1 draw played at White Hart Lane on Friday evening with them to France, but it proved not to be enough in the end.
The side with home advantage had their first major chance on 17 minutes when Julian Faubert's shot from the edge of the box was cleared off the line by Dawson.
The Tottenham defender was then lucky to escape with just a caution on 23 minutes after he brought down Jimmy Briand on the edge of the box which sparked a great deal of fury between the two sides.
Then Huddlestone came close on the half-hour mark when his dipping 30-yard volley flew inches past the post.
Charlton's Darren Bent finally broke the deadlock with a glanced header on 55 minutes but that lead only lasted four minutes as France grabbed an equaliser - their influential midfielder Franck Ribery turned Dawson on the edge of the box and fired a superb shot past Scott Carson.
Briand then converted a spot-kick after Kieran Richardson mistimed his tackle on substitute Diarra five minutes from the end to conceal England's fate.