Brazil will defend the World Cup next year as clear favourites after they crushed Argentina 4-1 in the Confederations Cup final on Wednesday, according to coach Carlos Alberto Parreira.

Parreira said Brazil had not been favourites for many years and he contrasted the team's current form with the way they scraped into the 2002 finals, only to win the title.

"We are going in as an absolute favourite," Parreira said.

"We will have to work on it. We must ensure the role of favourite does not affect us."

Unlike Argentina, Brazil are still not certain of a place in the 2006 finals in Germany, but need only three points from their final three South American qualifiers.

Parreira said he is happy to have won the Confederations Cup, but even more delighted to have tried out different strategies in their five matches in Germany, recovering from a 1-0 group stage loss to Mexico.

"We had the chance to test players. It's not just a title for us," Parreira said.

"We were defending well and very fast touching the ball. If we play that way we will be successful."

Parreira also offered his thoughts on the leading challengers Brazil could face, assuming they return to Germany next year.

"The home team will have a wonderful World Cup. I fancy Holland. The Czech Republic are strong. England and Portugal have improved a lot," he said.

Parreira also rated Argentina as one of the top teams, with little currently separating the two South American powerhouses despite Wednesday's result.

Argentina coach Jose Pekerman insisted the loss is no cause for panic.

"Let's not get desperate," Pekerman said, adding his side had never given up and had created chances to score.

"Reaching the final shows that our competitive level was good enough, but we possibly faced the best team in the world in the final," Pekerman said.