Michels was appointed national coach by the Royal Dutch Football Association (KNVB) after the Netherlands had qualified for the 1974 FIFA World Cup. His first game as the Netherlands' coach was on 27 March 1974 in a 1–1 draw against Austria. At the finals tournament in Germany, their third ever World Cup participation, the Dutch impressed many observers with their style of play which was backed up by their results; they won their first round group, then in the second round group they defeated Argentina and the defending world champions Brazil, and reached the final after five wins and one draw, with 14 goals scored and only one conceded in six matches. At that point, Michels was undefeated in nine matches as the Netherlands' coach. The Netherlands scored first against West Germany in the final, but the host team came back to defeat them 2–1, ending their run. That match was the last of Michels' first tenure in charge of the Dutch team, which he would return to coach ten years later.