Australia's Olympic campaign has been hit with its first selection controversy after London gold medallist Nathan Outteridge and his sister Haylee launched an appeal after being overlooked for the sailing team.

The Outteridges have been vying with Jason Waterhouse and his cousin Lisa Darmanin for the nod as Australia's representative in the Nacra 17 class for the Games, which will return to Enoshima Harbour, the site of the 1964 regatta.

Olympic gold medallist Nathan Outteridge.Credit:Getty Images

Whichever pair flies to Japan is a strong gold medal chance in Tokyo as part of a powerful sailing team.

Waterhouse and Darmanin, who won silver together at Rio, were last month ranked No.3 in the world for the Nacra 17 class.

Dual Olympic medal winner Nathan Outteridge, who is the helmsman for Japan in the SailGP series, was tight lipped about the selection process when quizzed on the eve of the Sir Russell Coutts-backed concept.

"My understanding is the selection process is still ongoing," he said. "That's all I can really say at the moment."

Asked whether he had an opinion on the selection process, Outteridge said: "No."

Waterhouse is part of the Tom Slingsby-skippered Australian crew which will start the year as defending SailGP champions.

Speaking in the week leading up to the SailGP event, Waterhouse said waiting for the phone call about Olympic selection had taken him through a range of emotions.

"It’s been a bit stressful, but Lisa and I are confident we put in a good submission you could say and did well in the important events," he said. "We feel like we’re the favourites, but it’s not in our hands. We’re really proud with what we’ve achieved."

We feel like we’re the favourites, but it’s not in our hands

Waterhouse's Australian crewmates will be aiming to defend their SailGP crown after beating Outteridge's Japan in the US$1 million winner-takes-all match race to end last year's series.

Outteridge had been tasked with leading the developing sailing nation, which this year must have three Japanese sailors of a five-strong SailGP crew under quota rules.

SailGP scored a huge coup when it signed four-time Olympic gold medallist and America's Cup legend Sir Ben Ainslie to skipper the Great Britain boat in 2020.

"Everyone up here is talking down their chances and how we're the hot favourites, but if you have watched the racing [in practice] you'll see it's anyone's game," Slingsby said.

Brothers Sam and Will Phillips will make their Olympic debuts in the 49er class while Jaime Ryan, the sister of 470 Olympic sailor Will Ryan, and Tess Lloyd, who survived a horrific onwater accident as a teenager which required surgery for a brain injury, will combine in the 49er FX class.

"It’s pretty special [to go to two Games]," Jaime Ryan said. "It’s something I hadn’t really thought about until everybody started pointing it out to me. To be going in a different class is something I’m proud of."

Several of Australia's sailing team admitted they are planning to spend a large part of their Games build-up in Japan providing the sporting extravaganza goes ahead amid the Coronavirus threat.

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