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France were strongly criticised after a poor showing in their opener as they drew 0-0 with Uruguay, and they were unable to improve against Mexico as they went down to a strike from substitute Javier Hernandez and a 79th-minute penalty from veteran Cuauhtemoc Blanco.
With Mexico and Uruguay both on four points and France and South Africa on one, a draw between the group leaders in their final game would ensure they go through and see France fall at the first hurdle.
"We need a miracle now," Domenech said. "We have to be strong and at least play for our honour. At least we must show something in the last match. When we are forced to rely on others, there's nothing to say."
He added on TF1:"I'm lost for words. It's a real disappointment for those who believed in us. We did try but there was always something that didn't work."
Winger Florent Malouda said: "It's shameful to lose like that. We can't leave a tournament without winning a match."
Mexico boss Javier Aguirre feels his players are now performing well as a team but insists France were strong opponents.
"It was an even match in which the team that scored first was always going to win," he said. "It was a tough win, very hard for us.
"We have been together for three months and the team is a well-oiled machine, and with our attacking potential we try to upset our rivals. Now there is just 90 minutes between us and our first objective: the second round."
Hernandez, who will join Manchester United this summer, called for focus after the win. "I am happy for so many reasons," he said. "Not just for my goal or for the man of the match award, but also because the victory brings so much joy to Mexico.
"But this win is just a first step. There's a long way to go. We are not thinking yet about the match with Uruguay - we want to make the most of this for the moment."
Captain Rafael Marquez added: "We have to keep our feet on the ground despite this win."