The 16 teams were again separated into four four-team groups, but this time the top two in each group only advanced to another series of group round-robins, with two semi-final groups of four teams each. The top two from each semi-final group then advanced to the semi-finals. The matches were played in six stadia in West Germany – Drei-Flusse-Stadion, Passau; ESV-Stadion, Ingolstadt; Jahnstadion, Regensburg; Olympiastadion, Olympiapark, Munchen; Rosenau-Stadion, Augsburg; and Städtisches Stadion, Nurnberg.

The 16 nations qualified as follows – German Federal Republic (West) as the host nation; Hungary as the defending champion; four teams from a European Olympic Qualifying Tournament (Soviet Union, Poland, German Democratic Republic (GDR) [East], Denmark); two teams from a South American Olympic Qualifying Tournament (Brazil, Colombia); two teams from a North and Central American Olympic Qualifying Tournament (Mexico, United States); three teams from an African Olympic Qualifying Tournament (Morocco, Ghana, Sudan); and three teams from an Asian Olympic Qualifying Tournament (Malaysia, Burma, Iran).

Hungary had won the last two gold medals and again made the final, but was defeated by Poland, 2-1. A new rule was enacted in the bronze-medal match, which stated that if it was tied, no re-play or tie-breaker would be used, but the two teams would share the bronze medal. This came into effect as the GDR and the Soviet Union played to a 2-2 tie.

The tournament rules were slightly changed for the 1972 Olympic football tournament, as the quarter-finals were replaced by a second round of round-robin play. Another rule stipulated that should one of the final matches end in a tie after extra time, both teams would receive gold or bronze medals. This rule had a negative effect on play, as the Soviet Union and East Germany were not willing to risk losing their bronze medal in the extra time of their match. The public booed them as they finished the match without attacking.

The final was played between Poland and Hungary, the 1964 and 1968 champions. Poland was coached by [Kazimierz Górski], who also managed the Polish national team. With future stars like [Grzegorz Lato], the Poles were considered to be the best team of the tournament. In the final, they trailed Hungary at half-time, but two goals by [Kazimierz Deyna] turned the match around. Two years later, Górski led the Polish team to a third place at the World Cup - also in West Germany - with many of the players that took the gold medal in Munchen.

The 1972 Olympic football tournament, held in Munich, Augsburg, Ingolstadt, Nürnberg, Passau, and Regensburg, was played as part of the 1972 Summer Olympics. The tournament features 16 men's national teams from five continental confederations. The 16 teams are drawn into four groups of four and each group plays a round-robin tournament. At the end of the group stage, the top two teams advanced to the second group stage, where the second-placed teams in each group advanced to the bronze medal match while the first-placed teams advanced to the gold medal match held at Olympic Stadium on 10 September 1972