Matildas soccer coach Alen Stajcic is setting his sights on next year's Olympic Games after Australia's 1-0 Women's World Cup quarter-final exit at the hands of Japan.

The Matildas were left devastated when Japanese substitute Mana Iwabuchi swept home a late winner, ending their tournament in Canada.

Players lay strewn on the pitch for several minutes after the match, disconsolate at the 11th-hour defeat.

Stajcic said he was as gobsmacked as his team, which had held Japan at bay for all but four minutes of regulation time. "I don't think there's much you can say after a game like that," he said. "All you can do is put your hand around their shoulder."

It was a cruel end to the Matildas' campaign at the World Cup, which, for the third straight time, ended in the last eight.

But taking the emotion out of the exit, Stajcic could already see the bright side.

Australia's players were much younger than the victorious Japanese team, who retained many players from their World Cup win in 2011.

Stajcic said this loss would enable his younger players to learn and grow before next year's Olympics in Rio de Janeiro.

"Most of them are young players so it's a heartbreaking experience for all of us," he said. "I'm proud of how we performed in a World Cup and I know there's so much growth.

"We don't want to compete with the best - we want to beat the best.

"By the time the Olympics come around, we want to take some more steps forward."

Stajcic, coaching at his first World Cup, said emulating Japan's technical prowess would significantly improve the Matildas.

"Our players, the bulk of our starting line-up are 20, 21, 22 [years old].

"We'll get there," Stajcic said. AAP