The Matildas went down 1-0 to hosts France in the third and last match of the four-nation International Tournament overnight in Limoges.
After previously bottom-placed Japan defeated Canada 3-2 in the opening match of the day, it provided the opportunity for the winner of the France-Australia encounter to claim first place and the trophy. The well-performed French went on to celebrate victory in front of a vocal home crowd, sending the Matildas down to fourth position.
The loss is Australia's first in a full international under coach Adrian Santrac, after a run of five wins and three draws, three games of which were against France in January 2001.
Australia started the clash in promising fashion, creating a one-on-one after just three minutes when Joanne Peters broke through on goal, only to be denied by the goalkeeper.
As the half wore on, France began to dominate proceedings, and were rewarded in the 37th minute. Star striker Marinette Pichon, who recently became France's first signing in the American professional league, burst past the last defender into the box with pure speed before slotting the ball home from a narrow angle.
In the second half, the spirited Australians stepped up in response to the challenge to put France under pressure and set up a lively finish to the deciding clash. The Matildas' best opportunity came in the 61st minute, Peters' strike skimming the crossbar. In the end however, the experience of the French allowed them to hold out and achieve the result that clinched the silverware.
National Coach Santrac summed up by looking longer term, saying, "Congratulations to France who played well to deserve their victory. These three games have been invaluable to assist our players with preparing for the World Cup Qualifiers."
The Matildas depart France today, arriving back in their home States on Friday.