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World number one Serena Williams insists she is fit and ready for a tilt at a seventh Australian Open title, downplaying a knee injury that forced her out of the Hopman Cup.

Williams retired due to soreness in her left knee during a singles match on January 6 at the mixed-team tournament in Perth, casting doubt over her ability to defend her title at the opening Grand Slam of the season.

But the 34-year-old told the Melbourne Herald Sun she was "ready for it. My body is feeling great now," she said.

"Obviously I had a hiccup but right now it is doing much better. I've had a few days of training so it's looking good."

The 34-year-old, who battled knee problems in the latter half of 2015 and has barely played since October, trained at Melbourne Park last Monday.

"I know what I need to do on and off the court to win big tournaments," she added to the newspaper last Monday. "That is what I like to do."

At the time of her retirement in Perth, Williams said: "I just have some inflammation that's been going away very slowly. AFP