Higuain knows all about the talent in Spain's squad, having played with and against most of the squad during an outstanding Primera Division campaign with Real Madrid.
Club team-mates Iker Casillas and Sergio Ramos are mainstays in Vicente del Bosque's first XI and with a plethora of talented players at their disposal, Higuain believes Spain deserve to be favourites to lift the trophy in South Africa.
"We know that at the moment Spain is the team who plays the best football, but in a World Cup you never know. Anyway Spain is top candidate,'' Higuain said.
But the striker, who scored 27 goals in 32 La Liga games for Real last season, believes that with Messi spearheading Argentina's World Cup charge, Diego Maradona's side will have every chance of winning the trophy themselves.
"Argentina is my country and we will fight for it, hopefully we can bring this beautiful cup to Argentina. Hopefully Lionel (Messi) shows the same performance as he does in Spanish League," Higuain said.
"For us it will be decisive. We know that the World Cup will be very tough because you have the best players there and if we want to win we need to do almost everything perfectly.''