The girls play New Zealand in a friendly next month in preparation for Rio

Australia's national women's soccer team have suffered a devastating defeat in the lead up to the Rio Olympics - going down 7-0 to the Newcastle Jets under-15 boys side.

What is particularly concerning for the Matildas is that despite resting some regulars, they were still able to field experienced international stars including former AFC player of the year Katrina Gorry.

Despite the embarrassing defeat on Wednesday night at Valentine Sports Park in Newcastle, the Australian team will travel to Brazil as one of the gold medal favourites.

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The Matildas have had a shock 7-0 loss to a Newcastle Jets under-15s boys team in Newcastle on Wednesday

The match was played at Valentine Sports Park in Newcastle and featured several of the Matildas' stars

While the Matildas played with a rotating squad, there is no denying losing to a team of school boys is far from ideal preparation for the world's fifth ranked team in their quest for Olympic gold at Rio.

Assistant Matildas coach Gary van Egmond was as surprised as anyone about the result admitting his side were outplayed.

'To be honest we didn't expect that,' Egmond told the Huffington Post Australia.

'The Jets boys were very good, all credit to them, they moved the ball around very well and were excellent all night.'

Former AFC player of the year Katrina Gorry played in Wednesday's clash but the Matildas were without their international stars

People took to social media following the result of the game to share their reaction

It is understood that the Matildas played with a rotating squad but it is not ideal preparation for the world fifth ranked team in their quest for Olympic gold at Rio

Egmond said that the Matildas are often forced to play against boys teams as trying to find quality female opposition can be difficult.

It may not be the first time that the Australian team have suffered a heavy defeat against school boys with claims that they were 'smashed' by an under 16 Sydney FC team last year circulating.

The social media reaction to the defeat has been condemning with many claiming that the result is not good enough for a team that is expected to challenge for a medal at the Olympics.

In the 2015 Women's World Cup in Canada, the team reached the quarter finals, losing to eventual winners Japan.

They will be hoping for a marked improvement when they kick off their official pre-Olympic friendlies with New Zealand in June.

The Matildas are Australia's only hope for a football medal at the Rio games after the men failed to qualify following a scoreless draw with Qatar in January.

Michelle Heyman previously played when the Matildas reached the quarter finals of last year's women's World Cup in Canada

At half time the Jets lead by three goals and spectators took to Twitter to share the result