MUNICH, Apr 27 (SW) - Germany great Lothar Matthaus believes Argentina will lift the 2006 World Cup in Germany.

Although bookmakers have installed defending champions Brazil as the favourite, Matthaus believes Argentina has a better side.

"I don't think Brazil will win this World Cup. They may have the best players but I don't think they have the best team," Matthaus told AFP in an interview.

"I think Brazil have defensive problems to sort out and my tip to win the World Cup is Argentina."

Matthaus, captain of the 1990 Germany squad which won the global championship, added that in addition to England and Italy, Marco van Basten’s Holland squad should also be considered pre-tournament contenders.

“England and Italy are in with a shout but I am also impressed by the Netherlands.

"If Dutch coach Marco van Basten can create a togetherness within the team then they could go far as they have the technical players."

As for Germany, Matthaus thinks Jürgen Klinsmann’s young squad will surprise its critics.

"I hope Germany will be the surprise nation, I really do," Matthaus said.

"Of course I want them to take the title but I have to be realistic.

"If they reach the semi-final it would be a surprise for me as there are a lot stronger nations at the moment.

"I think Germany will get past the first round as they have an easy group.

"But England or Sweden are likely to be the next opponents at the last 16 stage and I think that could be a bridge too far."

The 2006 World Cup finals kick off on June 9 in Munich, with Germany meeting Costa Rica at the Allianz Arena.