Cheered on by over 1000 fans, the Iraqis started the stronger team, dominating possession and causing problems down the flanks through wingers Emad Mohammed and Hawar Mulla Mohammed. Only bad luck and wayward finishing prevented them taking the lead.

Paraguay soaked up the early pressure and replied with a clinical strike from striker Jose Cardozo after 17 minutes, and the South Americans put the game out of reach late in the first half with a solo effort from Cardozo

In the second half, Fredy Bareiro added a third before substitute Razzaq Farhan hit back with a late consolation goal. It was scant reward for a spirited effort, but the Paraguayans’ superior big match experience made the final difference.

However the Iraqi dream of winning only their country’s second Olympic medal ever is still very much alive, as they take on Italy in Friday's bronze medal match in Thessaloniki with confidence still running high.

“For us it is still a great achievement to play for third place and try to win the bronze medal, taking into account all the difficulties in Iraq," said coach Adnan Hamd.

The Iraqi success story is built on team spirit, determination and hard work. Considering the difficult security situation and relatively poor training facilities, the team's success so far has been spectacular.

Only three months ago, several members of the Iraqi Olympic squad featured in an Iraqi team which travelled to England where they were hosted by The FA and the Foreign & Commonwealth Office (FCO) on a ‘Goodwill Tour’ which also doubled up as preparations for the Asia Cup and Olympic Games.

During their visit, they played friendlies against Trinidad & Tobago and the England National Game XI whilst raising the profile of their charity partner, CARE International, and their work in Iraq.

Currently four Iraqi club coaches are participating in The FA’s International Coaching Licence course at Lilleshall, which The FA is co-funding with the FCO. As part of an ongoing programme, more Iraqi coaches as well as referee instructors will attend FA development courses in October.

Paraguay, who will face neighbours Argentina in Saturday’s final at the Olympic Stadium, also have longstanding relations with English football through The FA’s International Development Programme.

With capital city Asuncion the seat of CONMEBOL, the South American football confederation, FA Chairman Geoff Thompson led a delegation to Paraguay last year to officially launch The FA-CONMEBOL Co-operation Agreement under the auspices of which five workshops have already taken place.