New Zealand coach Graham Henry has tipped Wales as the likeliest northern hemisphere threat to the Tri-Nations teams' 2011 World Cup hopes.
Wales ran South Africa close, led the All Blacks at half-time and beat Australia in the November Test series.
"It is a bit cyclic and I don't think either hemisphere can lull in a false sense of security," said Henry, whose own team completed a tour grand slam.
"And I think the Welsh are playing particularly well."
Henry added: "They play an expansive game and they've got good athletes across the pitch, forwards who can pass and catch and beat people.
"So I guess they're the yardstick in this part of the world at the moment."
"We've got Wales who are the toughest... right now"Wales were the only northern hemisphere team to beat a Tri-Nations side in November, downing the Wallabies 21-18 in a Cardiff thriller last weekend.
Henry's All Blacks beat Scotland, Ireland, Wales and England without conceding a try.
Their only real moment of concern came when the Kiwis trailed Henry's former charges Wales 9-6 at half-time, before roaring back to score 23 unanswered points.
South Africa captain John Smit agreed with Henry that Wales are the most dangerous of the European nations.
Grand Slam winners Wales share a tricky Pool D with the reigning world champion Springboks, their World Cup bogey team Fiji and probably Samoa.
"It's almost deja vu to 2004 when we did the draw for 2007," Smit said.
"At that stage, of the four home nations England were the toughest and we got them, and now we've got Wales who are the toughest of the four nations (in the second tier of seeds) right now.
606: DEBATE"A lot can happen in three years but it's a pretty challenging pool."
Despite regularly being tipped as the team to beat entering World Cup years, New Zealand have failed to lift the title since the inaugural tournament - co-hosted by New Zealand and Australia - in 1987.
The 2011 competition will be back in New Zealand and Henry is confident the country will be ready to lay on a great show off the pitch as well as on it.
"There's a lot of work being done right through New Zealand to make sure it's the best time it can be as far as New Zealand is concerned," Henry said.
"I think the Lions tour in 2005 was a good indication of New Zealanders and what they can do for rugby.
"And they really enjoyed the British Lions and Irish supporters and they'll enjoy the World Cup supporters and I think it'll be a great tournament."
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