Australia has arguably been handed the toughest draw possible with matches against world champions Germany, South American champions Chile and the as yet undecided champions of Africa.

In the other group New Zealand has been placed alongside Russia, Portugal and Mexico.

But Socceroo defender Wright said Australia have improved greatly since the 2014 World Cup, where they lost to Chile, and have what it takes to reach the semi-finals.

"Of course we can, we know it will be tough but we are a better team than we were then (two years ago)," he told FourFourTwo.

"So we are even more confident we can do well and get out of our group. I'm excited about the draw. It's going to be tough but that's a given when you play in Cups like these."

The Socceroos will face the Germans in Sochi before fixtures against the African champions in St Petersburg and Chile in Moscow.

Wright, who has 12 international caps to his name following his debut in 2014, will be pushing for a spot in Ange Postecoglou's Confederations Cup squad.

The centre back has been in solid form for his English club Preston North End this season. The Lilywhites are currently in 12th spot in the Championship, only four points off the playoff places.

Preston have lost just once in their past 10 matches. Last weekend they were held to a 1-1 draw with Burton Albion at Deepdale.

Burton took a first-half lead thanks to a goal from Socceroo Jackon Irvine. Wright said Preston started slowly but finished the match strongly.

"In the first half we were nowhere near our best and they took the game to us, lucky for us we came in at half-time 1-1," he said.

"In the second half we looked a lot more like ourselves and could have come away with more than just the draw."