England have a side capable of challenging Australia for the Ashes this year, according to Shane Warne.

But the leg-spinner also warned that the county game needs to become far more competitive if England are to ever match Australia on a regular basis.

The Ashes have been in Australian hands since 1989 and England are without a series victory since 1986-87.

Last year's series was much-hyped after England had won four of five series in the lead up while Australia were defeated in India.

But Steve Waugh's team were dominant, returning home with an emphatic 4-1 series victory.

"A lot of people thought that the last few Ashes were going to be close, but it didn't turn out that way," he said.

"This time could be close. England have started to play well, and if they don't pick up injuries to major players, it could be an interesting series."

England, who defeated Sri Lanka 2-0 in the first half of the domestic season, take on India in four Tests before departing for Australia, where the first of five Tests begins in Brisbane on 7 November.

Australia comfortably top the ICC Test Championship table after defeating nearst rivals South Africa last season.

Competition for places has driven their success in both the Test and one-day arenas, and Warne believes that is because of Australia's higher standard of domestic cricket.

"Australia's success is due to a combination of good coaches, the natural quality of the players we have had, our work ethic ... and the quality of both our first-class cricket and our club cricket," he said.

"County cricket over here is a lot stronger than I thought it would be, but in Australia we only have six teams and England has 18, so there is going to be dilution."

Warne recently admitted his desire to play a second season of county cricket with Hampshire.

But the south-coast county admitted the spinner's international commitments made a deal unlikely.