Gustavsson, 50, formerly an assistant coach with the USWNT, took charge of the Matildas in September 2020. “Tony has been an integral part of the Matildas' journey over the past four years, with a fourth-place finish at the Tokyo 2020 Olympics and the FIFA World Cup 2023,” said Football Australia chief executive James Johnson in a statement.

"We thank him for his strong contribution, passion, and commitment during that time and wish him every success for the future." Johnson added that the search for Gustavsson's replacement would "commence immediately."

A 2-1 loss to the United States marked the Matildas' earliest Olympic exit since their debut in 2000, a sharp decline from their fourth-place finish in Tokyo three years ago. Under Gustavsson, Australia reached the semi-finals of last year's Women's World Cup, which they co-hosted with New Zealand.

In Paris, Australia lost their opening game 3-0 to Germany, rebounded with a 6-5 win over Zambia, but were eliminated after the defeat to the United States, meaning it was their first group stage elimination since Sydney 2000. Their hopes of advancing as one of the best third-placed teams were dashed when Canada beat Colombia 1-0.

"It has been a great honour and privilege to have been the head coach of the Matildas over the past four years," Gustavsson said in a statement. “This journey with the team has had many incredible moments and memories that I will forever treasure. Australian football will be forever in my heart, and I will be watching on and cheering on your success in the future."

Meanwhile, defending champions Canada advanced despite being docked six points for a spying scandal. Head coach Bev Priestman was sent home and given a one-year ban after a staff member used a drone to spy on New Zealand's training session before their opening match.