Wallabies CEO Phil Waugh remains optimistic for Lions series despite dire form

Joe Schmidt speaks to Phil Waugh during a Wallabies Captain's Run

Rugby Australia chief Phil Waugh still believes the Wallabies will be tough opposition to the British and Irish Lions next summer.

Joe Schmidt's national side suffered the biggest defeat in their 125-year Test history when they were comprehensively defeated 67-27 by Argentina on Saturday.

The Wallabies three defeats in four in this year's Rugby Championship further compounds the misery experienced after their pool-stage exit at last year's Rugby World Cup.

"You can see the progress is there," Waugh told the Sydney Morning Herald. "It is not nearly where we need it to be, but if we keep progressing at the speed with which we have moved things in the last six months, then there is plenty of time."

Waugh feels the demoralising loss to the Pumas hid improvements made under former Ireland head coach Joe Schmidt's in his first six months in charge.

"It is a team that is, and I hate using the word 're-building', but it is a team that is re-setting, and it takes experiences in big moments to get better," Waugh added.

"Obviously the enormity of the scoreline in that second half [against Argentina] was disappointing.

"But there is context that is important... we are not the most experienced team in world rugby, and we are building that experience."

Australia will finish out their Rugby Championship campaign with Tests against the All Blacks on September 21st and 28th.