In the 2002 Algarve Cup, the twelve invited teams are split into two groups such that Groups A and B contain the strongest ranked teams who contest to win the Algarve Cup.
The twelve invited teams are split into three groups that played a round-robin tournament. 
With 12 teams participating, the Algarve Cup format has been as follows: Groups A and B, containing the strongest ranked teams, are the only ones in contention to win the title. The teams in Group C played for places 712. 
