Australia coach Ange Postecoglou has admitted that his players are deflated following their defeat to Chile at the World Cup.

The Socceroos fought valiantly against their South American counterparts on Friday before eventually going down 3-1 in their opening match of the tournament.

"The players are very disappointed because they sensed that the game was there for them and they thought they could get something out of the game. So to walk off and cop that late goal, it's very deflating," Postecoglou is quoted as saying by The Guardian.

Australia return to action on Wednesday, when they face Group B leaders the Netherlands in Porto Alegre.