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The US water polo team believe they can topple the sport's powerhouse Hungary after a fairytale run steered them to their first Olympic final in two decades.

"This team has been on an amazing run. It's almost magical," coach Terry Schroeder told reporters after the United States stunned Serbia 10-5 in Friday's semi-finals.

"(The final is) one game, and for that one game, for that one day, maybe we'll be better than them," said Schroeder.

"We tried to get them to believe in each other and trust each other and good things started to happen. Nobody would have believed this eight months ago."

There were euphoric scenes at the Yingdong Natatorium after the United States, surprise packages of the tournament who had been ranked ninth beforehand, romped to their first final since the 1988 Seoul Olympics.

Hoards of U.S. fans screamed and waved flags as the players roared, punched the air and embraced each other on the pool deck.

"This is a lifetime dream come true but it's not over yet," said goalkeeper Merrill Moses, who swam half the length of the pool to kiss the ball before every quarter.

"We came here to win the gold and we're going to do it."

Hungary, who are chasing a third successive Olympic gold, beat Montenegro 11-9 to reach the final.

U.S. Captain Tony Azevedo, who scored a hat-trick to take his total to 13 goals in the tournament, said team spirit had got the United States through.

"I'm tingling all over. This smile will never leave my face," he said.

"For us to come together like this is amazing. I couldn't be happier. We're all out there fighting for each other."

Reuters