It took place between 15 and 21 March 1998 in Portugal with Norway winning the event for the fourth time in its history defeating Denmark, 4-1, in the final-game.

The United States ended up third defeating Sweden, 3-1, in the third prize game.

[1] The United States returned to the tournament, replacing Iceland.

The eight invited teams were split into two groups that played a round-robin tournament.

Portugal finished bottom of their group for the fifth year in a row but won the match to decide seventh place on penalties after a 2–2 draw with Finland.