Why Wallabies can be World Cup contenders

Former captain Stirling Mortlock has changed his tune and reckons the Wallabies can challenge for World Cup glory after all.

Nine months after declaring Australia had "no chance" of winning back the Webb Ellis Cup this year following a "train-wreck" loss to Italy, Mortlock believes again.

A try-scoring hero of Australia's shock 2003 World Cup semifinal triumph over New Zealand under Eddie Jones, Mortlock has seen similar progression from the Wallabies since the master coach returned for a second stint in January.

While the Wallabies are none-from-four during Jones' latest tenure, Mortlock isn't ruling out emulating Australia's swift reversal in fortunes of 20 years ago.

Back then, the Wallabies made the World Cup final four months after copping a 50-21 Bledisloe Cup hammering from the All Blacks, only to lose the showpiece to England in extra time.

"I have been a lot more positive and optimistic than a lot of other people that I've been speaking to in and around the game," Mortlock told AAP on Tuesday.

"I have been to both the home matches that we've had and I've seen improvements from every Test match.

"Although we've lost all four, there's certain aspects of our game where I've seen definitive improvements."

Mortlock has been most impressed with Jones' juggling of the twin challenges of trying to settle on the best 33-man World Cup squad while overhauling the Wallabies' playing style.

(Continue below ...)

"That involves making sure players get certain opportunities to show their wares at Test level, so they've been rotating through more players than you'd normally want," he said.

"At the same time, they've been really trying to push the team through fundamental big changes to the way we're playing the game.

"If you add those two together, they really are two conflicting focuses that don't usually add up.

"For the team to be able to go through this - constantly changing your combinations - and still improve is huge. It's massive."

Mortlock believes the Wallabies were "pretty unlucky" not to have recorded their first win against the All Blacks in New Zealand in 22 years on Saturday, when they lost 20-23 in Dunedin.

He says the question remains whether Jones' charges have enough to beat the heavyweights of the world in France.

"If it's a fitness concern, there's not that much time to remedy that," he said.

"But I'm pretty strong on my view that firstly, we do have a relatively favourable draw. It's not easy but it's a good side of the draw.

"So that gives the Wallabies a good opportunity to get into the semis.

"In World Cups, it's all about maximising your chances of taking momentum into the sudden-death matches, and that will certainly be the focus for the Wallabies.

"With Eddie at the helm, I've got no doubt that's what they'll be focusing on and then applying themselves 100 percent on the sudden-death games.

"If you win two of those, you're in the final and anything can happen."

Jones will name his World Cup squad on Thursday.