World No. 1 Simona Halep says Serena Williams is the world's best player.

The top-seeded Halep hammered former world No. 1 Venus Williams, 6-2, 6-3, setting up a blockbuster Australian Open fourth-round clash vs. seven-time Melbourne champion Serena Williams.

Watch: Halep Stops Venus, Sets Serena Clash

Driven by history, 23-time Grand Slam champion Serena is bidding to equal Aussie legend Margaret Court's all-time record by winning her 24th major title in Melbourne.

Asked where Serena would be ranked if she played a full schedule, Halep said the 16th-ranked Williams is the best player in the world.

"But for sure she's the best player in the world because she won so many Grand Slams," Halep said. "She's been a lot on No. 1. I cannot compare my results to her. But in this moment, I am confident that I am in this position, and I'm positive about it."

Conceding she was once intimidated facing Serena, the reigning Roland Garros champion says she has massive respect for Williams, but no fear ahead of their 10th career meetings. Serena has won eight of their nine encounters, including the last five in a row. 

"She was (intimidating) when I was younger, but now I don't feel intimidated any more," Halep said. "I have huge respect for her because she's a great champion, but she's just an opponent next round.

"I played many times against her. We had also tough matches together. So it's going to be just a huge match for me. I will not put pressure on myself. There's a good chance for me to play my best tennis and to feel good on court."