The Olympic champions only needed a draw to advance out of Group B but instead were humbled by co-hosts Australia losing 4-0 and heading for the exit.

It was not pretty unless you were Australian. The 10th-ranked Matildas needed to win to be sure of moving on to the tournament's knockout round and they wasted little time getting the job done. It was one-way traffic from the get-go. Hayley Raso scored twice as Canada's vaunted defence was carved open in the first half. It could have been 3-0 at the break but a third Australian goal was ruled offside. Canada failed to put a shot on target in a first half and looked rattled.

And it got worse as Mary Fowler made it 3-0 in the 58th minute. Rubbing salt in the wound, Steph Catley scored on a stoppage-time penalty after video review confirmed a foul against Canada's Jessie Fleming on the edge of the box.

A draw or win would have moved the seventh-ranked Canadians into the round of 16. But they soon found themselves with a mountain to climb before a partisan crowd announced 27,706 at Melbourne Rectangular Stadium. And now they go home after three games, finishing third in Group B with a 1-1-1 record. They are the first defending Olympic champion not to get out of the first round of a World Cup.

It's Canada's worst finish at the tournament since it went winless in 2011 and finished last. It's likely also the Canadian women's worst game in recent years.

Talismanic Canadian captain Christine Sinclair, who came off the bench in last Wednesday's 2-1 win over Ireland, returned to the starting lineup but was one of four players substituted at halftime as Priestman looked for answers. One wonders how long the 40-year-old icon, the world's all-time leading scorer, will keep going.

In departing her sixth World Cup, the classy captain took some blades of grass from the field with her as a souvenir from her 326th international appearance.

Australia (2-1-0) wins the group with Nigeria (1-0-2) also advancing. Ireland (0-2-1) finishes fourth.