However, Bath centre Joseph said that he expected Wallabies head coach Michael Cheika to retain Folau at fullback in Brisbane, where he poses a greater threat on the counter-attack.
"Israel's a great player, obviously played the majority of his career at fullback but I've seen he's played a lot of 13 this season," Joseph told Australian media on Wednesday.
"Personally I think he'll play fullback but great player, great feet, hard to defend against but also there could be opportunities there as well."
Joseph also said he was excited by the prospect of lining up alongside Ben Te'o in midfield, with the Worcester Warriors-bound player poised to make his England debut at inside centre.
"His off-loading game's very good and defensively he's very tough," Joseph added of the New Zealand-born Te'o.
"He's a great player. Great to have in the squad and love to see what he can offer on the international stage."
Flanker James Haskell echoed Joseph's thoughts, saying Te'o had settled well in the squad.
"The guys have embraced him. From everything I've seen of him, he is 100 percent committed," Haskell told British media.
England head coach Eddie Jones, who will announce his squad for Brisbane on Thursday, appears likely to be favouring a move for Maro Itoje from lock to blindside flanker, putting former captain Chris Robshaw's place in doubt.
Haskell backed the youngster to be a success in the backrow.
"Obviously he has played all sorts of positions with Saracens and at the end of the day, it is about balance of a back row. So if that was an option then I am sure he would do outstandingly well there," he added.
The second test is in Melbourne on June 18 with the final match in Sydney on June 25.
(Reporting by Nivedita Shankar in Bengaluru; Editing by John O'Brien)
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