A controversial penalty seven minutes from full time has seen the Young Matildas suffer a 2-1 loss overnight to reigning U-20 World Champions DPR (North) Korea in Chongqing, China, ending the team's hopes of qualification for the 2008 FIFA U-20 Women's World Cup.
Australia needed a draw to keep their semi final hopes alive at the AFC U-19 Women's Championship with the top three nations to represent Asia at next year's World Cup in Chile.
The Young Matildas started brightly and were rewarded for their early pressure when Tameka Butt converted from the penalty spot after Kyah Simon had been fouled.
The Koreans equalised four minutes from half time through a stunning shot from the edge of the penalty area by Cha Hu Nam.
The second half was evenly balanced until the decisive moment of the match in the 83rd minute which saw captain Ra Un Sim score the winner from the penalty spot. DPR Korea were awarded a penalty for a foul but only after the spot-kick was preceded by the dismissal of the Korean team assistant coach Sin Ui Gun who was given his marching orders for rushing onto the pitch and remonstrating with the referee.
Australia will conclude their commitments tomorrow against Myanmar who were defeated 8-0 by Japan overnight in the other group match.
"It was a competitive and close game and though we played well in the second half luck was not with us today," said Young Matildas coach Alen Stajcic.
"In the second half we pressed looking for the goal we needed to qualify for the next round, and we dominated periods of play against a very strong opponent."
"The team showed true spirit and fortitude and we should be extremely proud of their effort in representing our country in a fair and sporting manner."