Earlier England lost their last six wickets for 39 runs after resuming on 163 for four. Jason Gillespie had five for 53 but man of the match Glenn McGrath did most of the damage Sunday with three wickets for four runs in 11 balls.

Australia now lead the five-match series two-nil and England have never won an Ashes contest from this position.

Their second innings ended with Mark Waugh claiming an outfielder's world record 158th Test catch to dismiss Darren Gough off Gillespie for one. Craig White was 27 not out.

In the sixth over of the day, McGrath charging in from the Pavilion End had Alec Stewart 13 not out overnight, plumb lbw for 28, England 188 for five and still 26 short of avoiding their second successive innings reverse against Australia.

He shared a partnership of 42 with brother-in-law Mark Butcher. Next ball Stewart's Surrey team-mate Ian Ward steered McGrath to the waiting slip cordon. Ricky Ponting, moving across from third slip claimed a fine catch as Mark Waugh at second slip took evasive action.

New batsman White, in on a pair, survived the hat-trick ball but worse was to come for England.Their hopes of making Australia bat again rested with Butcher.

The Surrey left-hander, 73 not out overnight, had survived one close call against fast bowler Gillespie, the ball just dropping short of Mark Waugh at second slip.

However, to the next delivery, Butcher cut wildly and was caught behind by wicket-keeper Adam Gilchrist for 83 off 159 balls including 12 fours. England had now lost three wickets in 10 balls for no runs.

Dominic Cork did not last long caught at first slip by Shane Warne off McGrath for two, England 193 for eight. McGrath had taken three wickets for four runs in 11 balls.

They still needed 21 to ensure Australia had a second innings and thanks to some blazing hitting from White and Andrew Caddick they at least managed to retrieve a small measure of self-respect.

But on seven Caddick was caught behind off Gillespie for seven and at 225 for nine England were only 11 ahead. England started Sunday on 163 for four, 51 behind and were confronted by the unusual sight of occasional off-spinner Mark Waugh opening the bowling from the Nursery End.

Gillespie had bowled Saturday's final over hence Waugh's introduction with McGrath favouring the opposite, Pavilion End. Waugh's first over was a maiden but Stewart struck him for three fours second time around. But once the heavy artillery returned it was a different story for Australia - and England.