The Westfield Junior Matildas bowed out of the AFC U-16 Women's Championship after a 3-0 defeat to DPR Korea on Wednesday afternoon.
Australia had qualified for the last four of the tournament for the first time in a decade after advancing as Group A runners-up.
But they were unable to secure a spot in the Final, where they would have qualified as one of Asia’s representatives for next year’s FIFA U-17 Women’s World Cup, which will be hosted by India.
“I'm absolutely gutted for the girls as our quest to travel to India for next year’s FIFA U17 Women's World Cup comes to an end,” coach Rae Dower said.
“With only our first loss throughout these last 12 months of qualification goes the chance to create a bit of history, something that the girls were highly motivated and excited about.
“I am extremely proud of all the players and staff for their performance throughout these Championships.”
Hye Yong Kim scored twice inside the space of three first half minutes for DPR Korea, who added a third in stoppage time through Pom I Kim.
“Our girls gave [DPR Korea] their toughest match up at these Championships to date and never took a backwards step,” Dower said.
“We were able to catch them out on occasion playing through their congested midfield and on the counter attack, but in the end the quality and execution of our last pass or shot were lacking.
“There is a reason why they've made seven out of the last eight Championship finals and why they're three-time winners of the FIFA U17 Women's World Cup.”
The Westfield Junior Matildas will be in action again on Saturday as they battle for third place with a clash against China.