Iraq, a dark horse in the men's soccer tournament, had its pace in the Olympic Games stopped in the semi-final when it lost to Paraguay 3-1 on Tuesday.
Paraguay led the halftime 2-0.
Paraguay will meet Argentina in the final while Iraq takes on Italy for the bronze.
Olympic men's soccer results
Following are the men's soccer results at the Athens Olympic on Tuesday:
Argentina bt Italy 3-0
Scorers: Carlos Tevez 16, Luis Gonalez 69, Mariano Gonzalez 84
Paraguay bt Iraq 3-1
Scorers: Jose Cardozo (Paraguay) 17, Jose Cardozo (Paraguay) 34, Fredy Bareiro (Paraguay) 68, Farhan Razzaq (Iraq) 83