Many members of his squad were in action when the Socceroos lost 1-0 to China in the World Cup qualifier on Sunday night, but Arnold knows his players are capable of much better.



"I was a little bit disappointed, I know what they can do individually. Whether it was stage fright the other night in front of 70,000 people I don't know," Arnold said.

"The Australian public have to realise that's not the best they can do, they've shown me a lot better in the past and they'll show much more in the Olympics, they've got bright futures all of them."

Arnold spoke from the Olyroos training camp in Darwin ahead of his side's two upcoming international friendly matches against the Chilean Under-23 team, declaring his side a legitimate medal contender at the Beijing Games.

He made no qualms about their intentions.

"Our goal is to win a medal, and that's not arrogant but we're going with the aim to win a medal," he said.

Arnold is still yet to finalise his 18-man squad for Beijing, which will include three over-age players.

Arnold has a few players in mind but won't make a decision until Saturday or Sunday.

Harry Kewell and Mark Bresciano were just two players to put their hand up during the week.

"I'm not 100 per cent certain yet, as I said the time's getting closer but we've got problems with the over-age players who are maybe changing clubs, so that makes it very difficult," he said.

"For example Brett Holman - he was on the list and he's changed clubs so it's going to be tough for him to get away now.

"So I've told all the Socceroos boys who are on the radar that I will contact them on Saturday or Sunday to get final confirmation."

Whoever the coach picks he wants to ensure they fit the mould and above all don't unsettle the young side's momentum.

"It's important for me that they are the right people to fit into the culture and that they won't affect the younger players in a negative way," he said.

"And there's no point taking over-age players for the sake of taking them, they have to be better than what I've got and at the same time they have to strengthen the squad considerably because if I'm going to take three players then they're going to have to play every game."

But Arnold did say the attacking half was a priority.

"It's no secret the front half of the field, defensively over the campaign (qualifying) we only conceded two goals.

"I'm conscious of other nations potentially taking star strikers so that's in the back of my mind, but I'd like to take two over-age players in the front half of the field if possible."

The Olyroos were dealt one of the cruellest cards at Sunday's Olympic Football draw in Beijing, with their Group A containing reigning Under 21 silver medallist Serbia, Athens gold medallists Argentina and a red-hot Ivory Coast team.

After the Chile matches (Friday June 27 and Sunday June 29) Arnold will cut his squad of youngsters from 30 to 18, including the three over-age players, before finishing the lead-up campaign with friendlies against New Zealand, China, Japan and South Korea.