Pekerman came here in the expectation his team, nicknamed the "Pekerboys" after the bulk of the senior squad graduated under his protective wing, would grow into their role as world champions in waiting.

Missed penalties from Roberto Ayala and Esteban Cambiasso meant they will have to wait at least another four years.

For all his animated wheedling from the technical area Pekerman was not able to address his pitchside coaching to the man who many Argentine fans will have felt was the one individual who could make the difference after he failed to send on the mercurial Lionel Messi, left on the bench throughout.

And the man in charge reacted afterwards by throwing in the towel, announcing his resignation.

"I am not going to carry on. I can leave with my head held up high. I have always believed in the players and they have not let me down," Pekerman said.

"I am convinced we did all we could -- and nobody is infallible. It is a great shame we could not go all the way. But the players still showed they are Argentina and did the country proud.

"I always believed in this squad -- we had two changes forced on us today and we paid dearly for it," said Pekerman as he was forced to replace goalkeeper Roberto Abbondanzieri through a hip injury with 20 minutes of normal time left, while it was Julio Cruz who appeared when Juan Riquelme appeared to take a knock.

Those misfortunes sealed Messi's fate as the Argentines ran out of substitutes.

Diego Maradona had anointed Messi as his successor since the latter made a starring contribution to a successful Under-20 world championship campaign last year.

The spine of the 'albiceleste' squad are also 'veterans' of the Pekerman-built teams which landed the 1995, 1997 and 2001 titles in that age group.

But Messi was left kicking his heels as the South Americans failed to build on Ayala's headed opener which Miroslav Klose cancelled out.

Instead, Pekerman tried out Cruz in place of the ineffective Hernan Crespo and then Cambiasso for a subdued Riquelme, whose usual mercury was falling as the clock ticked down towards 90 minutes.

Pekerman started off in October 2004 with a 4-2 win over Uruguay but came here on the back of friendly losses to England and Croatia.

He was under huge pressure to deliver as the last senior Argentine triumph came 13 years ago at the Copa America.

Pekerman's run of success in blooding youngsters has been a blessing to an Argentine federation which bit the bullet in 1994 by responding favourably to the application of a man who suggested how he would overhaul the two-times champions' football at youth levels.

In his envelope accompanying his CV Pekerman urged his country to "regain our identity and technical capabilities, unwrap our talent -- things which made us stand out but became lost" with the passage of time as Argentina failed to regain the heights of the Maradona era.

But Maradona himself expressed doubts when Pekerman was brought in to replace Marcelo Bielsa two years ago, opining that "he's not yet a coach for adults."

Despite an exhilarating 6-0 beating of Serbia and Montenegro in the group phase Argentina were unable to hit top gear against a dogged Germany and following the shootout lottery they will now have to start planning for 2010 -- with a more mature Messi this time on the pitch and without Pekerman.