This tournament would also mark the first time an Australian national team (senior or youth) would officially compete as an Asian side on the international stage.
The North Koreans reacted by throwing bottles and other objects at the referees, and North Korean goalkeeper Han Hye-yong kicked Italian referee Anna De Toni from behind.
Three North Korean players, including Han, were suspended before the third place play-off.
North Korea protested the decision, demanding a rematch and a reversal of the suspensions.
Japan will play off with the third-placed team from the 2006 Women's Gold Cup in the CONCACAF region.