The Matildas’ dream of a first-ever Olympic medal is over at the group stage after a 2-1 defeat to heavyweights USA.

The Matildas were dominated for large parts of the game by the four-time Olympic champions, conceding goals in either half before a desperate late comeback saw defender Alanna Kennedy score in stoppage time.

The result left Australia in third place in Group B after Germany beat Zambia 4-1 at the same time. The Matildas’ faint hopes of squeaking into the knockouts as one of the two best third-placed teams from the groups relied on results of matches played later on Thursday morning (AEST).

But when Canada beat Colombia 1-0, it assured the Canadians of a place in the knockouts – despite them being docked six points for a spying scandal that also saw their head coach Bev Priestman and two other staff sent home and banned from football for a year.

It also meant that Australia was knocked out, suffering their earliest exit since the Matildas made their Olympic debut in 2000.

After finishing fourth in Tokyo and in last year’s Women’s World Cup on home soil, Australia’s dream of a first-ever top-three finish at a major tournament is over – and likely the tenure of coach Tony Gustavsson too.

“It’s a tough one to take for us. We left it all out there,” Hayley Raso said to Channel 9.

“You can tell we’re all devastated,” Clare Wheeler said.

“It’s going to be one of those games we wish we could have again … we can only hope.”

“We’re sorry we couldn’t get the job done today,” she said in a message to fans.

Coach Tony Gustavsson said: “I said to the players in the circle that they should be extremely proud of the performance. They stuck to the game plan… We were playing one of the most in-form teams of the tournament.”

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FARCICAL SCENES AFTER OPENING GOAL

After defending resolutely against the star-studded USA for much of the first half, the Matildas’ stout defence was finally broken in the 43rd minute from a corner. Trinity Rodman – whose father Dennis was an NBA great – poked home from close range after the ball was headed back across the goal.

The Matildas prayed for the video referee to overturn the goal after a USA player was standing in front of Arnold in an off-side position, but the attacker did not appear to influence the play.

But in a bizarre sequence of events, it appeared as though the on-field referee Francois Letexier lost communication with the video assistant referee (VAR).

Letexier seemed set to resume play without reviewing the play on the pitch-side TV monitor, only to get a new communications headset at pitchside after a lengthy delay.

The referee then – at long last – reviewed the video replays and promptly awarded the goal.

Matildas coach Tony Gustavsson earned a yellow card for his complaints during the shambles.

And in the second half, Australia was hugely unlucky as American Sam Coffey avoided a second yellow card (and therefore a send off) for a nasty tackle on Katrina Gorry.

20-year-old USA substitute Korbin Albert doubled the lead with a long-range rocket in the 77th minute.

The luck turned in Australia’s favour when a Sophia Smith shot was deflected into one post, then bounced across the goal line and into the other post before being saved.

Then, in the 92nd minute, Australian centre-back Alanna Kennedy – who was thrown forward into the attack – scored from close range after substitute striker Michelle Heyman headed the ball to her.

Kennedy had a golden chance to score the equaliser shortly afterwards but failed to get her head on an Ellie Carpenter cross, with Kennedy one of many Matildas left in tears at the final whistle.

The United states finished with 20 shots to Australia’s six, with nine on target to Australia’s two (the same as the corner count, coincidentally).

The USA also had two-thirds of possession, and could well have won with a more dominant scoreline had they converted more of their many chances.

FIRST HALF RECAP

The Matildas opted for a defensive line-up with Kaitlyn Torpey replacing veteran Emily van Egmond. Torpey dropped deep into a left-back position in a five-player backline.

Katrina Gorry and Kyra-Cooney Cross held the base of midfield with Mary Fowler, Caitlin Foord and Hayley Raso up front.

From the opening whistle, Australia looked happy to sit deep and absorb pressure from the dangerous Australian attack while attempting to catch out the heavyweights on the counter.

The USA, who went with a full-strength line-up despite qualification almost virtually assured to the next stage (the only change was Emily Sonnett replacing injured centre-back Tierna Davidson), looked dangerous from the offing.

Skipper Lindsay Horan charged up the field in the opening five minutes and found Mallory Swanson on the left, who flashed a shot across goal that was touched clear by goalkeeper Mackenzie Arnold.

A couple of minutes later, Trinity Rodman cut inside and smacked a shot with her left foot straight at Arnold.

Australia was struggling to get on the ball – or hold it under immense pressure from the American midfield and defence.

But as the half wore on, the chances came, especially when Gorry marauded forward down the left wing to find a long ball in the 24th minute, before interchanging with Mary Fowler whose shot from the edge of the box went wide.

Arnold was drawn into action time and again to block shots or parry clear crosses, including on the half-hour mark when Swanson was played behind the defence with a deft lob, but the USA hadn’t yet managed a gilt-edged chance against a much-improved Australian defence.

In the 37th minute, a beautiful switch of play from Ellie Carpenter found Torpey on the left side, who found Raso neat the edge of the box.

Raso crossed the ball low inside the area but it was well-cleared.

But just a minute later, Crystal Dunn launched a howitzer from range that forced a strong parry from Arnold, with Australia desperately seeing off the resulting corner.

And Arnold pulled off her best save of the match just seconds later when USA captain Horan ghosted behind Alanna Kennedy at the back post and thundered a header towards goal, with Arnold deflecting it onto the crossbar and – thankfully – clear.

Rodman drew another Arnold save with a fizzing effort from the corner of the 18-yard box, but the USA finally broke the resolute Australian defence from the resulting corner.

Matildas captain Steph Catley got a header to the inswinging cross but couldn’t manage to get it clear, with the ball headed back across the face of goal by America’s Emily Sonnett for superstar Trinity Rodman to poke home from close range.

Then came the latest embarrassment for VAR, as the on-field referee seemingly lost communication with the video assistant, forcing a lengthy delay – and vocal complaints from the Australians – before the goal could be reviewed.

It was eventually confirmed, probably rightly, with the USA player standing in an off-side position in front of Australian goalkeeper Mackenzie Arnold deemed to have not influenced the play.

It meant that there were 10 minutes of stoppage time added on to the first half, but the Australians held on to reach the halftime interval just a goal down.

SECOND HALF

Australia pulled a midfield substitution at halftime, with Clare Wheeler brought on for Kyra Cooney-Cross. The USA similarly made a change, with Jenna Nighswonger replacing the excellent Crystal Dunn.

But the changes did little to change the flow of the game in the opening minutes, with Australia’s defence still grimly hanging on as the USA came out of the blocks with guns blazing.

Naomi Girma had the best early chance for the USA, dragging her shot narrowly wide of the post. But in the 53rd minute, a brilliant no-nonsense tackle from Gorry in the middle of the park sparked a quick counter-attack as Caitlin Foord played Raso into the box, though the winger’s tame shot was easily saved.

There was more controversy as Katrina Gorry was taken down heavily by American central midfielder Sam Coffey, whose studs slammed into the shin or high ankle of the diminutive Aussie.

Coffey was already on a yellow card after an early infringement, and was hugely lucky to avoid a second and therefore a sending-off.

VAR was unable to intervene, given it can only adjudicate on straight red cards rather than yellow card incidents.

But the USA onslaught was neverending, and Matildas coach Gustavsson turned to his bench just before the hour mark.

Katrina Gorry was taken off the field shortly afterwards for roving midfielder Emily van Egmond, while striker Michelle Heyman was introduced for Kaitlyn Torpey

Heyman nearly had an immediate impact when she fashioned a rare chance in combination with Raso, but the shot was blocked. And five minutes later, the Matildas looked to target Heyman again with a cross whipped in from out wide that was inches out of her reach.

The Australians showed greater attacking intent after the introduction of Heyman, searching in vain for a goal and a point that would see them through to the knockouts. The USA made more and more subs, and it was a substitute in Korbin Albert who turned the game in the 77th minute with a stunning long-range shot after a poor turnover from Clare Wheeler.

It was 20-year-old Albert’s first-ever goal for the USA.

The Matildas desperately poured forward in the hope of a late comeback, but couldn’t find the final pass to create the kind of golden opportunity the desperately needed. In the 79th minute, Australia pinched the ball near the USA byline and swung in a cross, which was cleared for van Egmond to shoot from range – but was again well-blocked.

But a third USA goal nearly arrived in the 82nd minute when Sophia Smith cut inside form the left side of the box and unleashed a vicious strike. It was deflected off the shoulder of Aussie centre-back Alanna Kennedy and into the near post, before bouncing across the goal line and into the other post before Arnold could dive on the ball.

Even Australia’s defenders turned into attackers in the frenzied finish, with Steph Catley coming close with an inventive flick-on header that was likely a pass but instead passed just wide of the post.

The ball was being flung into the box time and again as the USA sat deeper.

And it was a defender-turned-striker in Alanna Kennedy who scored for Australia in the second minute of stoppage time, after a cross was nodded down in her direction by Heyman. Kennedy was quickest to react in the box and prodded it home between the goalkeeper’s legs.

Kennedy nearly scored again a minute later when Ellie Carpenter curled in a sublime cross from the left flank, but the defender just failed to get her head on the enticing delivery.

In the dying seconds, the Matildas won a corner from a long Ellie Carpenter throw into the area, with goalkeeper Mackenzie Arnold coming forward for what was almost certainly the final kick of the game.

But it was cleared by the defence and the Matildas were left in tears as the final whistle blew.