This year's Ashes series is shaping up to be one of the most even in years, former Australia [Images] captain Steve Waugh said on Thursday.

Waugh said he considered the Australians to be slight favourites but there is no reason England [Images] cannot repeat their series victory at home four years ago.

"We've got a very good squad, no matter who is going to be put on the park," Waugh told a luncheon in Sydney Thursday.

"Our top 11 players will compete against anyone. I don't see why we can't win but England will probably feel the same."

Australia and England are both currently in rebuilding phases and Waugh said the Ashes picture would only become clearer once the availability of key players became known.

"There's probably a bit to go regarding team selection and fitness before that, so I'm not sure who our first eleven is going to be and whose England is going to be in the first Test," he said.

"They need people like (Andrew) Flintoff and (Simon) Jones to be in their team to have a chance of winning and we probably need a couple of our bowlers back."