Canada's World Cup, Olympic hopes in jeopardy after loss to Brazil at men's basketball World Cup

Suddenly, Canada's World Cup hopes are in peril.

The Canadian men's basketball team fell 69-65 to Brazil on Friday in Jakarta, Indonesia, setting up a do-or-die tilt with Spain on Sunday for a spot in the quarterfinals.

After rolling through the group stage with a perfect 3-0 record, Canada found itself in a gritty defensive battle against Brazil and unable to pull away as it had in previous games.

In the fourth quarter, Canada was outscored 24-13, continually unable to put together consecutive productive offensive possessions as Brazil's size and rebounding proved overwhelming.

The Canadians had scored at least 95 points in their first three games, averaging 108 per contest.

A critical out-of-bounds call in Canada's favour put the ball back in its hands with under two minutes remaining, where Luguentz Dort drew a shooting foul but made just one free throw to tie the game.

Yago then added a layup, putting Brazil up four points with under 30 seconds to go, and Canada was unable to complete the comeback.

Now, Canada faces its toughest test in a must-win game against reigning champion Spain. A loss would end its time at the World Cup while leaving the Olympic berth in the hands of other results and potential tiebreakers.

Bruno Caboclo, the former first-round pick of the Toronto Raptors, paced Brazil with 19 points and 13 rebounds. Shai Gilgeous-Alexander led Canada with 19 points.