Ian Thorpe finished fifth in the final of the 200m freestyle at the Victorian state swimming championships in Australia Saturday, taking a step forward in his bid to make the Olympic team.

The five-time Olympic gold medallist, who failed to make the 100m decider on Friday, improved marginally on his morning heat to touch in 1min 50.79sec, but still well behind winner Jarrod Killey's 1:48.28.

The holder of 13 world records announced a return to the pool in February last year following his retirement in November 2006, but it has been a rocky road with modest times so far.

It has thrown into doubt his ability to qualify for the London Olympics with the Australian trials fast-approaching in March.

Having failed to make the 100m freestyle final, the 29-year-old looked far more comfortable in the 200m and national head coach Leigh Nugent believes Thorpe needs to make this distance his priority.

"He's got more time to relax into the race and be his natural self," Nugent said of the 200m.

"Any race he swims will be important to him. To link two together in the one day will be particularly significant for him.

"Being a big man, it takes perhaps longer for him to get ready for a competition.

"It won't be until he really rests properly that we'll see what he's really capable of doing, and that won't be until trials.

"He's a fantastic athlete, he's our greatest ever and you can never underestimate his capability."

Also on the comeback trail is triple Olympic champion Libby Trickett, who placed sixth in the women's 100m butterfly final.

She clocked 1min 00.83sec, behind winner Ellen Gandy (57.96) of Britain.

Trickett finished fourth in Friday's 100m freestyle final.