The Australian men's hockey team has lost it’s semi-final match against Spain and will miss out on retaining its Olympic title. The team will instead play for bronze against The Netherlands.

Australia scored seconds into their semi-final match and  carried a comfortable two-nil lead before Spain fought back to level the score and finally win with a goal two minutes from full time.

Coach Barry Dancer says the Kookaburras were not good enough last night.

"We need to do the regroup thing we need to make sure we are strong mentally," he said.

"It is the last time some of these guys will be playing together in this group."

The Australians will play the Netherlands for bronze, with Spain to play Germany for the gold medal.