Australia will succeed if they continue to play with ball in hand, Sir Graham Henry says © Getty Images

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Australia can regain their mantle as the world's best rugby side only if they stick to their expansive game plan, Rugby World Cup-winning coach Sir Graham Henry says.

The Wallabies have come under fire for their adventurous game plan, after four consecutive losses, with the 38-12 defeat by South Africa in Brisbane heaping more pressure on new coach Ewen McKenzie.

Australia are currently ranked No.4 on the International Rugby Board rankings, and they appear to be a long way off being able to match the all-conquering All Blacks. But Henry, who coached New Zealand to the Rugby World Cup 2011 title, backed McKenzie to lead the revival, saying the former Queensland Reds coach was doing the right thing by encouraging a free-flowing style.

Australia enjoyed great success in the early noughties playing running rugby © Getty Images

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"When they were the best team in the world at the turn of the century, they played an expansive game," Henry said. "It's the way they should play because that's their mentality and that's their skill level.

"I don't think you are going to win games by playing chess-board rugby and kicking the balls in the air and chasing it. That's not the way Australians play, and they haven't got the forward pack that can give you that sort of dominance.

"I think they're trying to play the game the right way. They're struggling at the moment, but I think a couple of wins under Ewen will put them right. They'll gain some confidence. He'll gain some confidence, and they'll grow from it."

McKenzie enjoyed success during his stint with the Reds, coaching them to the 2011 Super Rugby title, and Henry said the Australian Rugby Union made the right decision in appointing McKenzie over Jake White, who took the Brumbies to the 2013 Super Rugby final.

"Jake's South African, so he coaches the way he's developed his coaching over the years," Henry said. "[He] has put his style in with the Brumbies. They're playing South African kind of rugby.

"Would it be successful at the next level?

"I think Australians would struggle with that style because you need dominance up front. If you haven't got dominance up front, you're buggered."

Henry is now a coaching advisor to Argentina, who play the Wallabies in a Rugby Championship Test in Perth on Saturday.

The Pumas haven't beaten Australia since 1997, but they showed plenty of fight in recent losses to South Africa and NZ.

Follow live text commentary of the Test between Australia and Argentina on Saturday, September 14, from 730pm (AEST), 930am (GMT)