Format
The number of invited countries was increased from six to eight with Italy and the Netherlands appearing in their first Algarve Cup tournament.
The eight invited teams were split into two groups that played a round-robin tournament. On completion of this, the fourth placed teams in each group played each other to determine seventh and eighth place, the third placed teams in each group played each other to decide fifth and sixth place, the second placed teams in each group played to determine third and fourth place and the winners of each group would compete for first and second place overall.
Points awarded in the group stage followed the standard formula of three points for a win, one point for a draw and zero points for a loss.
Read more about this topic: 1995 Algarve Cup