New Matildas coach Joe Montemurro is confident his team are headed in the right direction despite watching them slump to a shock 1-0 defeat to world No.56 Panama in Bunbury.

Panama stunned the home crowd when they took a 59th-minute lead through 19-year-old substitute Sherline King in Saturday’s wet and windy clash in Western Australia.

Australia pushed hard for an equaliser, and it looked set to arrive in the 96th minute when a goalkeeper’s save fell at the feet of veteran striker Michelle Heyman.

It marked the Matildas’ first loss under Montemurro, who had led the side to a 3-0 win and 1-1 draw against Slovenia in his previous two matches in charge.

Although the loss to Panama came as a huge surprise and also marked a big wake-up call, the Matildas fielded a side missing a host of their biggest stars.

The Matildas slumped to a shock 1-0 defeat to world No.56 Panama in Bunbury

Panama stunned the home crowd when they took a 59th-minute lead through 19-year-old substitute Sherline King

Sam Kerr, Mary Fowler, Steph Catley, Caitlin Foord, Katrina Gorry and Clare Wheeler were all absent from the current international window.

Ellie Carpenter, Mackenzie Arnold, Kyra Cooney-Cross and Sharn Freeier exited the squad after the Slovenia series, while Amy Sayer and Charli Grant were rested for Saturday’s match.

Montemurro has implemented a possession-based game style, and has been quick to warn there will be teething problems as his players adjust.

The Matildas have produced some horrible turnovers across the past three games while trying to maintain possession, but Montemurro is confident the short-term pain will lead to long-term gain.

‘It’s not going to be a situation where it’s going to change straight away,’ Montemurro told Paramount.

‘It’s going to be a slow burn, and I’m confident we’re going in the right direction.

‘It’s really important we continue on our way, we continue to believe this is the way forward.

‘We’re being proactive and we’re being possession-based because that’s what we need to be at the top level.’

Veteran striker Michelle Heyman missed a chance from point-blank range in the 96th minute

New Matildas coach Joe Montemurro is confident his team are headed in the right direction

Montemurro made a whopping 10 changes to his starting side against the Central Americans, with Kaitlyn Torpey the only player in the starting XI who also started in last week’s draw with Slovenia.

Panama’s day started on a horrible note, with goalkeeper Yenith Bailey lasting less than a minute before hyperextending her left knee while attempting a save.

The Matildas controlled possession and territory in the first half, but there were still danger signs.

Defender Natasha Prior had to time her sliding block to perfection to deny Panama striker Riley Tanner a close-range shot on goal.

Tanner was at it again in the 41st minute, with her powerful strike from a difficult angle slamming into the post.

In between Tanner’s threats, the Matildas wasted several good chances.

King gave Panama the lead just before the hour mark when she volleyed home the rebound from Matildas goalkeeper Teagan Micah’s save.

The Matildas pushed hard for an equaliser, with Montemurro unleashing four debutants off the bench, but in the end it was Heyman’s missed chance that proved to be the one that got away.

Goalkeeper Micah experienced dizziness after copping a hit in the second half and is in doubt for Tuesday night’s re-match against Panama in Perth.

Matildas player Chloe Berryhill said the team was ‘ironing out some kinks’.

‘It’s not the result that we want but it’s building blocks for us,’ she told Paramount Plus.