At a glitzy ceremony in Kuala Lumpur, 2003 beaten finalists China were lumped in the same group as Iran and Uzbekistan. They will also play co-hosts Malaysia.

South Korea are alongside fellow World Cup side Saudi Arabia, the semifinalists at the last Asian Cup, Bahrain, and co-host Indonesia.

Australia, the most successful Asian team at the World Cup, are in the Asian Cup finals for the first time after abandoning Oceania in January this year, and will also face Oman and Thailand.

As well as Qatar, Asian powerhouse Japan face off against United Arab Emirates and Vietnam.

Australian coach Graham Arnold singled out Iraq as their toughest opponent.

"I'm very happy with our pool. We are going in as one of the top seeds and we have plenty to live up to," he said here.

"Thailand are the highest ranked of the co-hosts, Oman are an unknown quantity but Iraq we are familiar with. Iraq are our toughest opponent. They are the one we fear and respect the most."

Arnold said he believed "75 to 90 percent" of his overseas-based stars, including Harry Kewell, Tim Cahill and Mark Viduka would play, adding glamour to the tournament.

"We are demanding that they be made available by their clubs because this is a very prestigious tournament," he said.

Australia were seeded along with Iran, Japan and South Korea. It means they will avoid each other until the knockout stages.

The tournament opens in Bangkok on July 7, with the semifinals played in Hanoi and Kuala Lumpur before Jakarta hosts the final on July 29.

There was last-minute drama when Saudi Arabia said it would not play in Thailand "for diplomatic reasons" that were not fully explained, although it is believed to stem from the killing of a Saudi diplomat in Thailand in 1990.

It meant the three-time champions could not be drawn in Thailand's group, or Vietnam's, as the winner of that group would play their quarterfinal in Bangkok.

Takeshi Ono, technical director at the Japan Football Association, said all groups were equally tough, highlighting the standard of football in Asia.

"We are just happy to be in the last 16," he said.

"We realise there are no easy groups. Of course there is added pressure on us as the defending champions, but our philosophy is to take one game at a time and see how things develop."

South Korea, who have failed to win the Asian Cup since 1960, have a tricky draw against Saudi Arabia and Bahrain with only the top two teams from each group moving into the knockout stages.

But Korean officials were content with the way it panned out.

"It is very good for Korea, although we are wary of Saudi Arabia as our results against them have never been good," said Korea Football Association manager of international affairs Shin Man-kil.

"We have not won the Asian Cup since 1960 and our goal is to change that in 2007."

The draw is the culmination of 10 months of qualifying.

Organising the tournament in four different countries for the first time has been fraught with difficulties, with four organising committees, four media centres, as well as the extra costs.