Wallabies coach concedes England are tops

Australia coach Eddie Jones has admitted that England and France are the best teams in the world - at the moment.

Jones made his comments after announcing a 38-man squad to attend a five-day training camp on the Gold Coast in January as his side prepare for the defence of their World Cup crown next October.

The Wallabies coach conceded that he feels his side have slipped behind England and France, but also warned that his men were "definitely" capable of retaining their title.

England proved that they will be a major threat at the World Cup after a clean sweep of all three Tri-Nations giants in November.

Jones said: "I'd say right at this moment that possibly England and France are the best teams in the world.

"But England haven't been tested outside of Twickenham and it will be interesting to see when they play on flat tracks during June how much improvement they've made."