Former Australia women's captain Julie Dolan has condemned a decision to recognise a 1975 side as the nation's first women's team, calling the move farcical and a mockery of selection.

The Dolan-captained team that played New Zealand in 1979 was previously recognised as Australia's first international side in women's football.

That was until Monday, however, when governing body Football Australia (FA) declared the 1975 squad that played in an Asian Ladies Football Confederation tournament in Hong Kong would now be known as the 'first Matildas', following years of lobbying by the players.

That squad, which was captained by Pat O'Connor and included a 14-year-old Dolan, wore Australia's colours and coat of arms at the Hong Kong tournament but was selected almost entirely from one Sydney club, St George Budapest.

FA had acknowledged the 1975 squad as "historically significant" two years ago while saying they fell short of criteria to be categorised as a senior national team.

"I want to stress that there were no trials and women from interstate clubs, or any club for that matter, were not invited to try out for this tournament," Dolan, 63, said in a statement.

"To hear that FA are now recognising this club team as the 'first Matildas' makes a mockery of the selection process for a national team and is nothing short of farcical."

The 1975 team captured the national spotlight last year when some of their players engaged in an ambush marketing campaign by sports apparel giant Puma in the lead-up to the 2023 Women's World Cup in Australia.

FA said on Monday that the team's recognition came after a comprehensive review, which had consulted historians and external experts.

"This recognition is long overdue and a testament to the pioneering spirit of the women who paved the way for future generations of female footballers in Australia," said FA Chairman Anter Isaac.

FA said that O'Connor was now recognised as the first Australian women's captain while her husband Joe O'Connor, the coach of the 1975 side, was Australia's first women's coach.

Aunty Tarita Yvonne Peters, formerly known as Stacey Tracy, is now recognised as the first Indigenous Australian player for the national women's team.

"I am deeply honoured and thrilled by Football Australia's decision to recognise our 1975 team with ‘A’ International caps," said Pat O'Connor."This acknowledgment and recognition as the "First Matildas" not only celebrate our efforts and dedication but also cements our place in Australian football history as the pioneers of the women's game."