The format was the same as in 1964 with 16 teams separated into four groups, who played a round-robin within the group, to determine the top two finishers in each group, who advanced to the quarter-finals and the knockout phase. The matches were played at four stadia around Mexico – Estadio Azteca, Ciudad de México; Estadio Jalisco, Guadalajara; Estadio Cuauhtémoc, Puebla; and Estadio León, León.
The 16 teams qualified as follows – Mexico as the host nation; Hungary as the defending champion; four teams from a European Olympic Qualifying Tournament (Czechoslovakia, Bulgaria, France, Spain); two teams from a South American Olympic Qualifying Tournament (Brazil, Colombia); two teams from a North and Central American Olympic Qualifying Tournament (Guatemala, El Salvador); three teams from an African Olympic Qualifying Tournament (Guinea, Nigeria, Morocco); and three teams from an Asian Olympic Qualifying Tournament (Japan, Thailand, Israel). However, Morocco withdrew after it was drawn in the same group of Israel, not wishing to play them, and was replaced by Ghana.
Hungary defended its Olympic gold medal with a crushing defeat of Bulgaria, 4-1, after defeating Japan in the semi-finals, 5-0. Japan won a surprising bronze medal with a 2-0 defeat of host nation Mexico.
HUN
BUL
JPN