Australia's Sydney FC said they were ready to "make history" when they take on Japanese giants Urawa Red Diamonds at home on Wednesday in the AFC Champions League, where a draw could take them through to the last 16 for the first time.

The clash comes as defending champions Guangzhou Evergrande remain at risk of exiting the Asian club tournament just two months after smashing China's transfer fee record to sign Colombian striker Jackson Martinez.

Guangzhou have so far only taken one point off the two teams in Group H, with Urawa's coach Mihailo Petrovic saying the Chinese club's position at the bottom of the table showed money could not buy everything.

"They have some big names which we don't have or Sydney FC doesn't have, but we and Sydney FC played as a team," Petrovic told reporters in Sydney via a translator when commenting on the side coached by World Cup winner Luiz Felipe Scolari.

"When you look at individuals, obviously they have the better side. But I think we gained confidence by winning (against) this Chinese giant because it proves that money isn't everything in football," he added.

Sydney FC's 1-0 victory earlier this month against South Korea's Pohang Steelers -- Asia's most successful club team -- to record their third-straight ACL win showcased the strides the Australian team has taken in the regional contest.

But Sydney FC manager Graham Arnold said his players would face a tough challenge against what he described as the "Manchester United of Japanese football", with the harbourside team losing 2-0 against Urawa in their opening group game in February.

"We have the chance of making history with Sydney," Arnold said.

"It's obviously a very tough group. Today to be sitting on nine points from four games and winning the last three in a row is a fantastic achievement but we still haven't done anything yet.

"To get through to the last 16 is hugely important and then we take it from there."

The Sydneysiders' success in Asia has contrasted with their struggles in the domestic A-League, with the club failing to make the play-offs.

Arnold conceded he had rotated his players in the league matches and played his strongest line-up available in the champions league, but said he and his players relished the "new challenge".

"When you see the players' faces, when you see the excitement around the champions league games, the challenge that is before them. It's something totally different to the A-League."

Sydney's Brandon O'Neill said his team-mates were confident of defeating Urawa.

"They play very good... attacking football and we know we have to be at our best tomorrow (Wednesday) night to beat them, but in saying that we are very confident we can do so," O'Neill said.

"We are top of the group for a reason and we've been playing some very good football of late so all the lads are raring to go."

Sydney's rivals the Western Sydney Wanderers are the only Australian side to have lifted the champions league trophy, in 2014. Adelaide United were runners-up in 2008.