Suspended Canadian women's soccer coach Bev Priestman apologised on Sunday to her players and the nation for the drone scandal that led to her exit from the Paris Olympics and dealt a blow to the team's hopes of a repeat gold medal.

In her first public comments since Canada Soccer suspended her from the Games, Priestman said as the leader of the team she accepts accountability and plans to fully cooperate with the investigation.

"I am absolutely heartbroken for the players, and I would like to apologise from the bottom of my heart for the impact this situation has had on all of them," Priestman said in a statement released by her lawyers.

"To Canada, I am sorry. You have been my home and a country I have fallen in love with. I hope you will continue to support these extremely talented and hardworking players, to help them defy all odds and show their true character."

Earlier on Sunday, Sport Canada said it was withholding funding allocated for salaries of Priestman and two other suspended team officials, calling the drone scandal that has rocked the Paris Olympic soccer tournament an embarrassment to all Canadians.

Canada's team were docked six points in a massive blow to their hopes of retaining their Olympic title, while Priestman and officials Joseph Lombardi and Jasmine Mander were banned from any soccer-related activity for one year by FIFA, following charges that Canada staff members used a drone to spy on an opponent's closed practice session earlier this month.

"Using a drone to surveil another team during a closed practice is cheating," Canada sport minister Carla Qualtrough said in a statement.

"It is completely unfair to Canadian players and to opposing teams. It undermines the integrity of the game itself. Given that the Women's Program receives funding from Sport Canada, we are withholding funding relating to suspended Canada Soccer officials for the duration of their FIFA sanction."

Sport Canada is in the process of determining the exact amount of funding to be withheld, the minister's office told Reuters in a statement, adding the withheld funding will not impact the overall funding to the women's program.

"There is a deeply concerning pattern of behaviour at Canada Soccer," the statement added. "We must, and will, get to the bottom of this. This issue has caused significant distraction and embarrassment for Team Canada and all Canadians here in Paris and at home."

Canada Soccer has said it was exploring how it could appeal the six-point penalty levelled by FIFA that leaves Canada on minus-three points in Group A, with two matches left to play.

Canada is scheduled to face France later Sunday.

Former Canada players have thrown their support behind the team.

"Furious. Fuming. Sad. Heartbroken. These players don't deserve this," former goalkeeper Stephanie Labbe, who helped Canada win gold at Tokyo, posted on X. "They've been let down by so many of their own people, not just [national team] staff.

"Standing with these players and every player that has ever been part of this program, and worked so hard to build it, not tear it down."

Diana Matheson, who retired in 2020 after 206 appearances for Canada over a 17-year career, gave her full support to the players.

"Like many Canadians, I've been working through many emotions on this story that has become such a distraction for not just the WNT, but drawn attention away from the entire Canadian Olympic team," she wrote.

"I stand with the players. I'm with you. Canadians are with you. Last game, next game, all the games, we are right there with you. Take six points from us? Fine, let's go get nine."