The coach believes that his side has plenty of opportunity to get better as the tournament goes on as the team prepares for a quarterfinal encounter with Germany.
Les Bleus progressed beyond the second round after a 2-0 win over Nigeria, with a Paul Pogba header breaking the African side's resistance before Joseph Yobo sliced into his own net late on.
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France has received plaudits for its performances in the World Cup so far, most notably a 5-2 win over Switzerland in the group stages, but Deschamps insists that the team has not yet come close to reaching its peak.
"There is room for improvement," the 45-year-old was quoted by L'Equipe. "The group is young. Even when things are going well, there are always aspects that can be improved."
Deschamps, a World Cup winner in 1998, noted that there are a number of aspects to address if France is serious about mounting a challenge for a second World Cup title.
"The precision in technical interchanges, complexity in movement [can be improved]," he continued. "The defensive aspect is something we can work on. But in the offensive space, it's more complicated. It requires more time to get it right."