Craig Foster's fears with Matildas next move as Tony Gustavsson era ends

Australian football great Craig Foster "not surprised" that the Matildas elected to part ways with Tony Gustavsson following a disappointing early exit from the Olympics.

Gustavsson's four-year deal was due to end after the Matildas' campaign but it is understood he farewelled players and staff following the side's 2-1 defeat to USA.

Football Australia said in a statement that the decision to not extend Gustavsson's contract was mutual.

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The 50-year-old's future has sparked mass speculation since last year's Women's World Cup, as he has been linked to move to the helm of the Swedish men's side and the US women's national team.

But his dismissal did not come as a shock to many, due to the bombshell nature of recent reports of internal turmoil.

"I'm not surprised about this move, I'm actually quite pleased," Foster said on Stan Sports' Paris preview.

"I think it's good for both parties. I think the Matildas just need to walk in and play a slightly different style of football now, in order to get a medal at the 2027 World Cup. 

"This generation, some of them will retire in the next year or two, but they've got a final three years for most of them as a group. Therefore, you need to maximise the capabilities of this group now (ahead of) the Asian Cup at home in 2026 and then for the World Cup."

While the hype around the Matildas has exploded since the World Cup, the reality of the team collecting trophies is unfamiliar territory.

The Matildas have not had tournament success in over 14 years and prior to the World Cup on home soil, Gustavsson's reign had little to show for.

"There needs to be a really strong analysis on what the group is missing at this point in terms of the football and who then has the capabilities. 

"I would say the first question is who is making that assessment?

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"We used to have a technical director - you need an independent person whose responsibility is to make assessments as to where the group is and where they should be going. I'm not quite sure who that is and as a game we should be sure but no one is sure.

"Everyone loves the Matildas and as a nation we love our national sporting teams. They are our teams and therefore we have a right to know who is making these decisions."

Football Australia chief executive James Johnson is due to touch down in Australia on Saturday and begin planning for the next phase of the team.

Candidates to take over the role have slowly emerged since the announcement, however, Foster believes the nation is lacking the internal evolution of retired players investing in coaching.

"The other disappointment to me is that in all the years of professional football [in Australia] ... where are all the Emma Hayes [coach the of USWNT]?" he asked.

"We are now starting to produce male football coaches, mostly. I know that we have a couple of women but there is not enough coming through.

"We should by now have at least a couple of former Matildas doing fabulous, that should be the obvious choice.

"I think they [Football Australia] need to answer the question of, how does the football not only change, but need to improve."