For Gerringong Public School's Eliza Metcalfe, the odds are in her favour.

The year 5 student will again look to be crowned the state's best speller when she competes in the final of the Premier's Spelling Bee in Sydney next month.

After winning the junior final last year, Eliza said she was ready for this year's competition.

"It was fun last year but I was really nervous," she said.

"I'm still nervous this time but not nearly as much."

Competing in the senior category this year means Eliza will battle it out against older students, something she said added to her nerves.

"I have to spell against the year 6 students as well, so it is a bit daunting." she said.

Eliza felt she would do "pretty well" despite having to face older students and said the toughest word she had spelt this year was paraplegia.

"It was tough mainly because I wasn't sure what it meant," she said.

A record 123,306 students have taken part in the competition this year.

The 2012 final, to be held on November 7, will be the biggest so far, with 84 students from throughout NSW competing.

Gerringong Public School principal Joy Fullagar said Eliza had done incredibly well.

"She's a quiet achiever but she applies herself in everything she does," Ms Fullagar said.