Crisis-struck Argentine football suffered another blow Wednesday when the two-time Olympic gold medallists were dumped out of the Rio Games at the group stages following a 1-1 draw with Honduras.

Argentina needed to win to secure a place in the last eight due to their inferior goal difference with the Hondurans after both had lost to Portugal and beat Algeria in their opening two Group D matches.

However, the Central Americans sprung a huge surprise as Antony Lorenzo's penalty 15 minutes from time put them in front in Brasilia and, despite Mauricio Martinez's equaliser deep into stoppage time, Argentina bowed out in embarrassing fashion.

The Albiceleste's chances were severely hampered by chaotic preparation for the Games.

Coach Julio Olarticoechea was put in charge just weeks before the tournament began after Gerardo Martino resigned citing power squabbles at the Argentine Football Association and clubs not releasing players for the Olympics.

Hosts Brazil hope to avoid the same fate as their eternal rivals later on Wednesday when they take on Denmark in Salvador needing to win to guarantee their place in the last eight.