The Matildas continued their undefeated streak after a win against China but were just shy of earning a shot at gold.
Australia will now face Portugal for the second time in the 2018 Algarve Cup, playing for bronze.
Australia and Portugal have only met twice before, but in both games, the outcome was a goalless draw.
Fans will remember this match due to some very controversial officiating along with poor weather and pitch conditions.
This time around, the Matildas have a better idea of the kind of game Portugal are capable of playing.
Portugal have never finished above fifth at the Algarve Cup.
Key Player Australia: Chloe Logarzo
Having a goal disallowed against Portugal the first time, Chloe Logarzo will no doubt be seeking redemption on Wednesday night (Thursday morning AEDT).
Logarzo has been on fire at the Algarve Cup, scoring Australia’s opening goal against China PR, maintaining a strong presence in the midfield and creating some game changing opportunities.
In her last four appearances for the Matildas she has scored three goals and has been a consistent threat to defenders.
Key Player Portugal: Jessica Silva
Midfielder Jessica Silva made Lydia Williams work hard to keep the score at a draw when the teams met a few days ago.
So far, she has scored five goals with three at the European World Cup Qualifiers and two during Friendlies.
Expect to see the same dangerous attacking partnership between her and captain Claudia Neto.
Where it will be won
A positive for both teams is being able to reflect on their last game together, which was only a few days ago.
The biggest problem for Australia in that game was being able to create and convert opportunities because of their hasty decision making.
Portugal has shown that when they get the ball, they know how to play it but they also know how to put the pressure on the Matildas.
Players like Neto, Silva and Diana Silva came dangerously close to toppling the Matildas so Australia’s defence is going to need to be strong to keep those players away from the net.
Now having the benefit of experience, a calmer and more controlled approach from Australia will mean more accurate passes, ultimately helping them keep possession.