England’s dream of lifting a first World Cup was dashed at the final hurdle after Olga Carmona’s first-half strike proved enough to secure Spain a 1-0 victory in Sydney.
Sarina Wiegman’s side still achieved a best-ever second-place finish, but that will be little consolation to the Lionesses, who came within inches of an opener when Lauren Hemp clipped the crossbar in the first half.
FIFA Best goalkeeper Mary Earps produced several fine saves to keep England in the contest, including the vital block to deny Jennifer Hermoso’s second-half spot kick as her determined team-mates tried to stage a comeback.
That never came, and while the Lionesses had their chances they ultimately could not find a way past speedy Spain, who survived 13 minutes of stoppage time to secure a deserved maiden world title.
Wiegman named an unchanged side from the one that beat Australia 3-1 to advance to this stage for the first time.
World Cup debutant Lauren James, who had scored three times and added the same number of assists in the group stage, was available for the England boss after serving a two-match ban and came on as a second-half substitute.
USWNT goalkeeper Naeher to retire from international football
United States goalkeeper Alyssa Naeher is to retire from international football next month.
Naeher has won 113 caps for the USWNT and was a regular between the sticks during their most recent World Cup-winning campaign in 2019, also starting for Emma Hayes' Olympic Gold medallists in Paris earlier this year.
The 36-year-old, who has represented the Chicago Red Stars in the NWSL since 2016, will link up with Hayes' side for their upcoming friendlies against England and the Netherlands, but that will be the final camp she attends.
Naeher said in a statement posted to her Instagram account: "With immense gratitude and very thoughtful consideration, I have decided to retire from the international game.
"Having the opportunity to be a part of the USWNT for the past 15 years has been the greatest honour.
"This has been a special team to be a part of and I am beyond proud of what we have achieved both on and off the field. The memories I have made over the years will last me a lifetime.
"I know one chapter is ending, but I am so excited to continue to see the growth of this team going forward and what more they can accomplish."
Hope Solo (202) and Briana Scurry (175) are the only goalkeepers to make more appearances for the team than Naeher, who made her debut versus Argentina in December 2014.
Mbappe position switch works wonders for Ancelotti
Carlo Ancelotti was satisfied his tactical decision to switch Kylian Mbappe's position in attack paid off in Real Madrid's 3-0 win over Leganes.
Mbappe scored his seventh goal of the season to help Madrid to a comfortable victory in LaLiga on Sunday.
However, his position in Madrid's front line has been a topic of debate since he joined the Spanish champions, with Mbappe having often played out wide while at Paris Saint-Germain.
And Ancelotti elected to switch Mbappe out to the left flank against Leganes, with Vinicius Junior spearheading Los Blancos' attack.
"Mbappe played on the left side, where he did well, and Vinicius on the inside," Ancelotti told reporters.
"We have to highlight their play to open the scoring. They did very, very well. Mbappe scored, after a fantastic assist from Vinicius. Little by little, they're both improving.
"Kylian is more used to playing there and today, for the team and for him, it was the best thing.
"Because playing on the outside brings more effort and Vinicius was back on Thursday. Meanwhile, Kylian had been training here for a week and a half, he was fresher."
Mbappe was not called up by France coach Didier Deschamps for this month's Nations League games, despite being Les Bleus' captain.
With an injury crisis at the back and a trip to Anfield to face Premier League and Champions League leaders Liverpool coming up, Ancelotti added he was hopeful of Lucas Vazquez, who has a hamstring strain, and Aurelien Tchouameni, who is recovering from a sprained left ankle, returning to action.
He was also upbeat about the contribution of Federico Valverde, who scored from a free-kick while filling in at right-back.
"The truth is that Fede, at the back, has done very well," said Ancelotti of the Uruguayan, who also wore the captain's armband.
"He's a fantastic fullback. After Dani Carvajal and Lucas Vazquez, the best right-back in the world. His problem is that he can play at this level in many positions and is the coach's problem to choose the best position for the team.
"Let's see if Lucas and Tchouameni can recover. If not, we will make decisions."
Jude Bellingham netted Madrid's other goal as Ancelotti's team closed to within four points of LaLiga leaders Barcelona, who drew 2-2 with Celta Vigo on Saturday.
Madrid also have a game in hand on Hansi Flick's side.
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