It will also square off against Japan, who is coached by legendary Brazilian player Zico, and Croatia, who finished third in the 1998 finals.
The Socceroos will open their tournament when they meet Japan at Kaiserslautern on June 13, followed by Brazil, at Munich on June 18, and Croatia at Stuttgart on June 22.
Australia was the first nation drawn in group F after top seed Brazil was placed there automatically.
England was handed a clash with Sweden in the 2006 World Cup draw which also produced a first-round showdown between two-time champions Argentina and the Netherlands.
England will open their tournament against Paraguay in Frankfurt on June 10, followed by Trinidad and Tobago in Nuremberg on June 15, and then Sweden in Cologne on June 20.
Host nation Germany will play Costa Rica in the opening match of the tournament on June 9 in the futuristic new Munich stadium while Poland and Ecuador complete Group A.
The Dutch, twice World Cup runners-up, were the unseeded team lying in wait for the top seeds and were duly grouped with Argentina in Group C.
Their match in Frankfurt on June 21 should be the highlight of the opening phase.
First-time African participants Cote d'Ivoire and Serbia and Montenegro are the other nations in Group C.
The draw in the eastern German city of Leipzig also threw up a relatively easy group for France, the winners in 1998 who crashed out in the first round in 2002.
It was grouped with surprise 2002 semi-finalists South Korea, African debutants Togo and Switzerland in Group G.
Three-time winners Italy were handed first-round clashes against Ghana, the United States and dark horses the Czech Republic in Group E.
Perennial World Cup under-achievers Spain face a potentially tricky task against Ukraine, current African champions Tunisia and Saudi Arabia in Group H.
Mexico will hope to qualify along with Portugal from a Group D which also includes Iran and first-timers Angola.
The 64-match tournament will be played in 12 German cities from
June 9 and culminating in the final at Berlin's renovated Olympic Stadium on July 9.