MELBOURNE (Reuters) -Joe Schmidt's preparations for the British & Irish Lions tour appear on shaky ground with the loss of first-choice flyhalf Noah Lolesio deepening the sense of pessimism surrounding the Wallabies following their lacklustre showing against Fiji.

Schmidt was tasked with making the Wallabies competitive in time for the three-match series against the Lions but they were clunky in a 21-18 win over the Fijians, with only a late try saving them from a confidence-killing defeat.

With the first Lions test looming, Lolesio's series-ending neck injury from the Fiji clash has made Schmidt's task that much harder.

Robbed of his most experienced flyhalf, and accurate kicker to boot, Schmidt is left with the difficult choice of backing one of the inexperienced duo of Ben Donaldson and Tom Lynagh at flyhalf or gambling on a player like 35-year-old James O'Connor, who has not played a test in three years.

Meanwhile, hooker Dave Porecki is undergoing concussion protocols after playing his first test in nearly two years against Fiji, while question marks remain over the fitness of three of Schmidt's most important players.

Back row enforcer Rob Valetini and hulking lock Will Skelton missed the Fiji game with calf strains along with scrumhalf Jake Gordon, who is recovering from a hamstring injury.

Even if that trio recover in time for the July 19 series-opener against the Lions in Brisbane, they will sorely lack match sharpness next to their opponents.

Andy Farrell's squad, by contrast, will head to Brisbane with several tour matches under their belt, with combinations tested, tweaked and refined.

New Zealander Schmidt can only wish for the depth at Farrell's disposal as he ponders a squad bereft of world-class players and a gulf in class between his first-choice men and reserves in a number of positions.

Despite prop James Slipper turning 36 a month ago, Schmidt has found no one better to dislodge the long-serving loosehead, while tighthead Allan Alaalatoa is similarly unchallenged due to Taniela Tupou's struggles.

In the backline, Max Jorgensen and hyped-up midfielder Joseph Suaalii will be under huge pressure to perform in the cauldron of a Lions series despite boasting few test caps and coming off injuries.

'QUIET RESOLVE'

Two years out from hosting the 2027 World Cup, much is riding on the Wallabies putting on a good show against the Lions.

Rugby Australia is on the hook for tens of millions of dollars after taking out a private equity loan to tide the local game over. The governing body hopes the Lions series and a successful World Cup will balance the books.

But painful memories of Australia's group-stage exit from the World Cup in France remain fresh.

Schmidt's appointment last year was heralded as a clean break from the chaotic reign of Eddie Jones and a chance for the Wallabies to rebuild their battered brand.

Now in his second year, Schmidt could only speak of having a "quiet resolve" rather than real confidence before the Wallabies take on the Lions.

"We haven’t been together for six months and to have five trainings and to be seamless, that would be an expectation that I hoped for rather than believed would immediately happen,” he said.

"So now we have another short runway to try and improve from where we were today."

(Reporting by Ian Ransom in Melbourne; Editing by Peter Rutherford)