Australia captain John Eales was yesterday named in a 24-man squad for this weekend's TriNations match against South Africa but with a deadline to prove his recovery from a knee injury.

The towering lock will undergo a fitness test on ligament damage to his left knee later in the week to determine whether he will lead the Wallabies in Pretoria on Saturday.

"My knee has progressed quite well but it needs to certainly improve a fair bit more before I can play," said Eales, who rated his chances of being fit as possible rather than probable.

The injury, sustained in training last week, forced Eales to miss Australia's 36-24 loss to New Zealand in Dunedin on Saturday, a result which confirmed the All Blacks as Tri-Nations champions.

On an eventful day for the Queensland forward, Eales agreed to extend his contract with the Australian Rugby Union (ARU) until 2001 on terms reported to be worth an annual A$400,000 (£297,000).

Wallaby coach Greg Smith has dropped Garrick Morgan to make way for Eales' return, while flanker Matt Cockbain has won a recall after missing the All Black clash because of mild concussion.

Should Eales fail the fitness test, flanker David Wilson is expected to retain the captaincy.

Meanwhile, ARU chief executive John O'Neill said he saw no reason why Smith should not see out his current contract, which expires in December, leaving him in charge for the tours to Argentina and Britain later this year.

"There's no reason why I wouldn't be supporting Greg's retention right through to the completion of his contract," O'Neill said.

The ARU is scheduled to review Australia's performance this season at a board meeting in September. The review's timing has prompted local media to speculate Smith could be replaced by ACT Brumbies coach Rod Macqueen before the Wallabies leave for South America, comments O'Neill described as "unhelpful and unnecessary."

Smith, who leaves for Johannesburg with his squad today, said the fixture against South Africa would decide which team holds the current number two ranking in the world behind the All Blacks. "I think at the moment we are number two with South Africa. If we can beat them on Saturday, I'd say we're clear second," Smith said.