Germany ended their World Cup campaign with a 3-1 win over Portugal on Saturday to finish third and lift spirits after the painful semi-final exit to Italy.

Two Italian goals deep in extra-time left German fans heartbroken but the post match celebrations in Stuttgart showed there was still a wave of euphoria within the host nation.

Despite missing out on Sunday's final, German followers can reflect on a good World Cup particularly given the low expectations heading into the finals.

At Euro 2004 Germany crashed out without winning a single match and their fans dreaded an embarrassing World Cup on home soil.

Klinsmann, a World Cup winner with West Germany in 1990, took over the reins in August 2004 after Rudi Voller resigned and the players welcomed his positive attitude.

Despite having no previous managerial experience Klinsmann said he wanted to create a team capable of winning a fourth World Cup crown with just two years to do it in.

Five consecutive wins, including a penalty shootout victory over Argentina, saw the team surge into the last four, but Klinsmann and the team fell narrowly short against Italy.

Germany's high-tempo game could not get the better of Italy's technically superior side with Marcello Lippi's charges showing rhino-like skin to battle the home crowd and prevail.

"We are happy with what we achieved and this tournament has been a success but we have not reached our ultimate goal of becoming world champions," Klinsmann said.

"It is like when you go to the Olympic games - you want gold not silver.

"But I am so proud of this team. They have done me and the whole country proud."

"Germany is respected again and we should not be afraid of what is coming up in the future. We have every reason to be optimistic."

With young talent such as Philipp Lahm, Bastian Schweins-teiger and Lukas Podolski - all in their early 20s - Germany now have something to build on.

The 21-year-old Podolski was voted best young player at the finals while Pele and Diego Maradona -- arguably the two finest players to grace the game, heralded 22-year-old defender Lahm.

The old guard have been cleared out or retired with goalkeeper Oliver Kahn, 37, the latest departure, announcing his international retirement after the Portugal game.

The question now is whether Klinsmann is going to continue developing this team as his contract has expired and he has yet to decide whether to sign an extension.

Fans chanted his name throughout the third-place win over Portugal and he has the backing of the German Football Federation who are trying to persuade him to stay on for two more years until Euro 2008 in Austria and Switzerland.

"All of the players will talk with Klinsmann and ask him to say - if he has not already decided," said Germany captain Michael Ballack.

Klinsmann has said he must discuss the situation with his American wife and family who are based in the United States.

He will have close to five weeks to make his decision with German football chiefs setting mid-August as the deadline.

If the 41-year-old decides to return to managing his sports marketing firm in California, German football could find themselves in the unwanted situation of trying to find a fourth coach in six turbulent years.

Erich Ribbeck and Voller failed at Euro 2000 and Euro 2004 respectively and Germany will want to put that record straight at Euro 2008 with Klinsmann in charge.

Replacing him would be a major headache as not many wanted the job after Euro 2004 with former Bayern Munich coach Ottmar Hitzfeld and Greece manager Otto Rehhagel turning down the post before Klinsmann came to the rescue.

There were highs and lows for the former Tottenham, Bayern Munich, Inter Milan and Monaco striker with two defeats against Italy - a 4-1 thrashing in March and the semifinal loss - the lows, with the five World Cup wins over Costa Rica, Poland, Ecuador, Argentina and Portugal the highs.

Germany fans will hope there are many more to come under the Klinsmann era.