Netherlands midfielder Rafael van der Vaart admitted the Dutch had not played well enough to progress to the quarter-finals.
The 2012 World Cup finalists were seen as one of the pre-tournament favourites but failed spectacularly to live up to the billing and now return home on the back of three successive defeats.
Van der Vaart looked to have set his side up for an unlikely quarter-final spot when he put them ahead with a fine early strike, but Portugal fought back through two Cristiano Ronaldo goals to leave the Dutch bottom of Group B.
“We were not good enough this tournament,” Van der Vaart admitted to NOS.
“It was just a very poor performance by us. That’s why we didn’t deserve to go through.
“You know it’s going to be a tough match. After our goal they were the better team. We all played very bad. It’s very disappointing, especially for the Dutch fans.
“After the loss against Denmark, you know it’s going to be difficult, because you have to face two teams. Now we have to start all over again.”
Portugal advanced and will now face Czech Republic in the quarter-final, with group winners Germany meeting Greece.
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