The Swedish Football Association announced early 2 September 2012 that Sundhage signed a four-year contract that starts on 1 December. The announcement came hours after Sundhage's match as coach of the U.S. women's team, an 8–0 win in a friendly match against Costa Rica; the first of a series organized to celebrate the winning of gold medal at the 2012 London Olympics. Sundhage replaced Thomas Dennerby, who resigned after Sweden failed to reach the semifinals in 2012 Olympics. "I have long dreamed of becoming Sweden coach and now I am so happy" Sundhage said. Sundhage's first major tournament as coach of the Sweden team was the 2013 European championship, which Sweden hosted; Sweden lost 0–1 in the semi-final to Germany, which won the championship.