Waugh led Australia to Ashes victory in 2002/03

"There is no reason why they can't do well next year," Waugh, a 168-Test veteran told BBC Five Live.

"They're a very good side, they're gelling together nicely under a new captain and anything's possible.

"It only takes one guy to put on a great performance in the first Test and you never know what could happen."

England, who last month won their first series in the Caribbean since 1968, face home series against New Zealand and West Indies this summer.

It's always difficult to stay on top but I think we can stay on top for a bit longer Steve Waugh

They also face a tough tour to South Africa, but will have one eye on Australia, who they have not beaten since 1987.

Waugh paid particular tribute to Steve Harmison, telling Sport on Five: "The biggest thing they've got now is strike bowlers who can put a bit of fear in the opposition.

"The attack is looking good, they've got experience with the batting but they will measure themselves up against Australia."

However Waugh, who retired in January, said the subsequent series victory in Sri Lanka proved his former team-mates still have what it takes.

"To win in those conditions against Murali was a big feat for the side and particularly Ricky Ponting in his first series," he said.

"India loom as the main danger, England are playing some good cricket recently then you've got the talent of Pakistan and the strength of South Africa.

"It's always difficult to stay on top but I think we can stay on top for a bit longer."