The 20 teams were divided into four groups of five, with each team playing the others once. The two top teams from each group qualified to the quarter-finals. The rest of the teams were eliminated.
First round
Group A
7 July 1981
Israel 6–0 Finland Ramat Gan Stadium , Ramat Gan
Australia 2–0 Belgium Ramat Gan Stadium , Ramat Gan
8 July 1981
Belgium 1–1 United States Ramat Gan Stadium , Ramat Gan
Israel 6–0 Australia Ramat Gan Stadium , Ramat Gan
9 July 1981
Israel 4–1 United States Winter Stadium , Ramat Gan
Australia 2–0 Finland University Football Stadium, Tel Aviv
10 July 1981
Finland 5–2 Belgium Hapoel Ground , Ra'anana
11 July 1981
United States 2–0 Australia Wingate , Netanya
12 July 1981
United States 5–0 Finland Ramat Gan Stadium , Ramat Gan
Israel 5–0 Belgium Ramat Gan Stadium , Ramat Gan
Group B
7 July 1981
Netherlands 0–0 Italy Ramat Gan Stadium , Ramat Gan
Argentina 0–0 Peru University Football Stadium, Tel Aviv
8 July 1981
Sweden 2–2 Argentina Ramat Gan Stadium , Ramat Gan
Peru 2–0 Netherlands University Football Stadium, Tel Aviv
9 July 1981
Peru 1–0 Italy Ramat Gan Stadium , Ramat Gan
Sweden 3–1 Netherlands Ramat Gan Stadium , Ramat Gan
10 July 1981
Argentina 4–0 Italy University Football Stadium, Tel Aviv
11 July 1981
Sweden 4–3 Peru University Football Stadium, Tel Aviv
12 July 1981
Italy 0–0 Sweden University Football Stadium, Tel Aviv
Netherlands 1–1 Argentina Wingate , Netanya
Group C
7 July 1981
South Africa 2–1 Chile University Football Stadium, Tel Aviv
West Germany 5–0 Republic of Ireland University Football Stadium, Tel Aviv
8 July 1981
South Africa 2–1 West Germany Wingate , Netanya
Colombia 4–1 Republic of Ireland University Football Stadium, Tel Aviv
9 July 1981
South Africa 2–1 Colombia Wingate , Netanya
West Germany 3–0 Chile University Football Stadium, Tel Aviv
10 July 1981
Republic of Ireland 1–0 Chile Winter Stadium , Ramat Gan
11 July 1981
West Germany 3–1 Colombia Ramat Gan Stadium , Ramat Gan
12 July 1981
South Africa 6–0 Republic of Ireland University Football Stadium, Tel Aviv
Chile 1–1 Colombia Wingate , Netanya
Group D
7 July 1981
Mexico 0–0 Great Britain Wingate , Netanya
Brazil 0–0 France Wingate , Netanya
8 July 1981
Denmark 1–1 Mexico Wingate , Netanya
Great Britain 1–1 Brazil University Football Stadium, Tel Aviv
9 July 1981
Great Britain 2–0 France Wingate , Netanya
Brazil 3–2 Denmark University Football Stadium, Tel Aviv
10 July 1981
France 2–1 Mexico Ramat Gan Stadium , Ramat Gan
Great Britain 5–1 Denmark Wingate , Netanya
12 July 1981
France 3–0 Denmark University Football Stadium, Tel Aviv
Brazil 1–1 Mexico Ramat Gan Stadium , Ramat Gan
Knockout rounds
Quarter-finals
1. The match was abandoned at the 120th minute, as an Argentine player was sent off, but refused to leave the pitch.[2]
5th-8th places play-off
* Both France and Sweden forfeited their matches in the classification round.
Semi-finals
14 July 1981
Attendance: 1500
Referee: Ya'akov Scheiner
14 July 1981
Attendance: 400
Referee: Franz Garter
3rd-4th place match
15 July 1981
Attendance: 500
Referee: Panler