The defending champions avoided the likes of Portugal and France and will be favoured in all of their games.

"I am neither worried nor satisfied," said Lippi.

"We have to be realistic, they are all strong rivals.

"They are not easy nor difficult. I believe it becomes more difficult if you underestimate them."

The Azzurri will begin their title defence on June 14 against Paraguay in Cape Town before facing New Zealand in Nelspruit six days later.

The Italians end the group on June 24 against Slovakia in Johannesburg.

"Slovakia has done very well and have important players," said Lippi.

"Paraguay has dominated their continental standings for the last two years and have important players.

"They are rivals to be feared because they have done well.

"But we will study our opponents and verify their style of play."

Vladimir Weiss'Slovakia made history by reaching the event for the first time by finishing top of Group 3, with seven wins and two defeats in 10 qualifying matches.

Paraguay finished second in their South American qualifying group, level on 22 points with Chile.

New Zealand are returning to the World Cup after a 28-year absence but made life difficult for the Azzurri in the Confederations Cup this summer before losing 4-3.

Lippi expects a more challenging tournament than the 2006 edition in Germany when his team won the title.

"The African nations are much stronger and they will play for the first time at home," said Lippi.

"Then there are all the other nations that have won the World Cup before."

Striker Antonio Di Natale was pleased with the draw but believes Italy will have to prove their strength on the pitch.

"It's a good group," said the Udinese forward, who currently leads the goalscoring charts in Serie A.

"But they are all rivals that can make life difficult for us.

"Slovakia, New Zealand and Paraguay represent the new football.

"New Zealand's strength is not technique, but they are physically a strong side.

"We are favourites but we will have to prove it on the pitch."