Eight teams qualified during the qualification tournaments held in their respective zones in 1987; Canada qualified automatically since they are one of only two members of the North America zone. Panama and the Dominican Republic withdrew from the tournament. The teams formed a single group of seven teams.
The top four teams from the main group advance to the semifinals.
The winners in the knockout semifinals advanced to the Final and were granted berths in the 1988 Summer Olympics tournament in Seoul. The losers figure in a third-place playoff where the winner was given the third and final place in the Olympics.