The USA won the tournament defeating Germany, 1–0, in the final-game.

[1] The twelve invited teams are split into three groups that played a round-robin tournament.

The group A and B winners contest the final – to win the Algarve Cup.

The third and fourth-placed teams in Group C played for the eleventh place.

In the case of two teams being tied on the same number of points in a group, their head-to-head result determined the higher place.