Australia's bid to win the competition for the first time in 16 years took a hit on Sunday night after they drew to South Korea 3-3 to finish second in their group.
The result meant the host nation would face the loser of the North Korean-China showdown in the quarter finals after both Asian superpowers punched their tickets to the playoffs before the clash.
It was a late first-half goal to China's Wang Shuang that proved the difference on Monday night in Sydney, but the goal was met with much controversy.
On the stroke of halftime, a lofted free kick found defender Zhang Chengxue and she squared it to Wang, who poked it past North Korea goalkeeper Yu Son-Gum.
The strike was initially called offside by the assistant referee, but VAR reversed the decision and the North Koreans were left fuming, refusing to finish playing out the half.
They did return for the second period and tried desperately to find an equaliser, but the Chinese held strong to see out the victory.
The result means the North Koreans finish as Group B's runners-up, setting up a date with the tournament hosts on Friday in Perth, where the winner will earn a semi-final berth and a spot in next year's Women's World Cup.
China, coached by former Socceroo striker Ante Milicic, will dodge the Matildas and instead face a less steep task of the runner-up of Group C - either Chinese Taipei or Vietnam.
After a tense and frantic opening half hour, North Korea were the first to score when Han Jin-Hong stormed down the right side and squared the ball to Kim Kyong-Yong, who guided it into the net in the 32nd minute.
China looked to respond immediately, and just two minutes later forward Shao Ziqin teed up fullback Chen Qiaozhu, who fired the ball from outside the box into the bottom right corner.
After Wang's first-half injury time goal, it was up to the Koreans to equalise.
They thought they had in the 80th minute when go-to scorer Choe Il-Son found the back of the net, but the goal was ruled offside.
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