European champions Spain were tipped as World Cup favorites by bookmakers on Friday after the draw was made for next year's finals in South Africa.

British bookmakers William Hill had Spain at odds of 4-1 to lift the trophy, with England second best at 5-1 after Fabio Capello's side were handed a favorable draw.

Spain will play Honduras, Chile and Switzerland in Group H while England are in Group C with United States, Algeria and Slovenia.

Brazil are third favorites at 11-2 after the five-times champions landed a tough group alongside Portugal, Cote d'Ivoire and DPR Korea.

Spain strikers Fernando Torres and David Villa, at 9-1, are joint favorites to be top scorer.

The finals are expected to break the one billion pounds (1.66 billion US dollars) barrier in British betting turnover, according to a William Hill spokesman.

"The last World Cup came close to producing a one billion pounds turnover but we have no doubt the 2010 tournament will smash through the barrier and go well beyond," Graham Sharpe said in a news release.