England, chasing 197 for victory, needed 10 to win off Glenn McGrath's last over and three off the final delivery with the last two men at the crease.

Two runs were needed to level the scores with the last-wicket pair at the crease when Glenn McGrath struck Ashley Giles on the pads, who got back for a second as the ball trickled to third man.

The finish, in front of a packed crowd of more than 24,000, left Australia in a state of shock. It was only the 21st one-day international tie and England's second. Their first, in May 1989 at Trent Bridge, was also against Australia.

Bowled out for 196 after being asked to bat in seamer-friendly, overcast conditions, they reduced the home side to 33 for five in the 10th over only for Paul Collingwood (53) and Geraint Jones (71) to resurrect English hopes with a 116-run stand for the sixth wicket.

It was only Jones' third half-century at one-day level for England and no sooner had he brought up his landmark from 86 deliveries than he deposited Jason Gillespie back over his head for a third six.

When he took a single off the next delivery it brought up the 100-run stand and left the hosts needing 64 from the final 10 overs to win the triangular tournament that also involved Bangladesh.

In an extraordinary collapse, half the side were dismissed inside the opening 10 overs as Australia pace pair McGrath and Brett Lee made the most of the conditions.

After pace bowler Lee floored Marcus Trescothick with a 91-mile-per-hour beamer, Australia got to work.

Earlier, Andrew Flintoff and Steve Harmison produced a commanding performance to help dismiss Australia with seven balls of their 50 overs to spare.

Harmison took three for 27 while all-rounder Flintoff claimed three for 23. Michael Hussey batting top-scored for the world champions with 62 not out.