Williams finished with 5-53

New Zealand were left to rue some terrible fielding in the latter stages as Australia won a closely-contested one-day international in Pune.

Two catches were dropped in the final over before the Aussies grabbed the single they needed to claim a two-wicket win with just one ball left.

Both teams lost early wickets as rival seamers Brad Williams and Daryl Tuffey impressed with the ball.

But Andrew Symonds's 37 not out proved to be the match-winning knock.

Australia, after losing their first game in the triangular series, have now reeled off three wins on the trot to advance into the final.

The Black Caps have recorded two losses and one no result and must beat India in Cuttack on Thursday.

Australia won the toss and had to chase 259 after New Zealand recovered from 21-4 through Jacob Oram (81) and Brendon McCullum (51 not out).

Adam Gilchrist and Matthew Hayden put on 34 for the first wicket before Tuffey removed both men and followed up with the wicket of Damien Martyn for just 10.

The age-old saying 'catches win matches' really came true on this occasion From Andy Toongabbie Have your say on TMS

Captain Ricky Ponting became the fourth batsmen dismissed inside the first 15 overs when he was bowled by Scott Styris for 16 and at 65-4 Australia looked in trouble.

But young Michael Clarke, who is clearly at home at this level, defied the pressure to hit a crucial 70 in partnership with Michael Bevan (50).

The pair had put on 108, getting the required run rate down to manageable levels before Tuffey returned to bowl Clarke off the inside edge, finishing with figures of 4-30.

The stage was set for Bevan to steer the Aussies home but he top-edged a pull off Cairns and was caught.

Ian Harvey blazed a run-a-ball 19 and the Aussies needed 28 off the last 24 balls with four wickets in hand.

Michael Clarke hit Australia's highest individual score

It went to the wire, however. First, Harvey holed out off Daniel Vettori then Styris bowled a tight over.

When Vettori dislodged Andy Bichel, the Kiwis were back on top with 15 wanted off the last eight balls.

Symonds smashed a four and a six off the last two balls of Vettori's final over though, and five were needed off the last over.

Unbelievably, Williams was missed by wicket-keeper McCullum halfway through the over and Symonds, in hitting the winning run, was dropped by short mid-wicket.

It was the second time in his innings Symonds had been missed and New Zealand also missed a number of run out chances.

In the New Zealand innings, Williams finished with 5-53.

Stephen Fleming made an important 40, in the process surpassing the injured Nathan Astle as New Zealand's most prolific one-day batsman when he had made 16.

Australia: Ricky Ponting (capt), Adam Gilchrist, Matthew Hayden, Damien Martyn, Andrew Symonds, Michael Bevan, Michael Clarke, Andy Bichel, Ian Harvey, Nathan Bracken, Brad Williams.

New Zealand: Chris Nevin, Stephen Fleming (capt), Lou Vincent, Scott Styris, Craig McMillan, Chris Cairns, Jacob Oram, Chris Harris, Brendon McCullum, Daniel Vettori, Daryl Tuffey.

Umpires: David Shepherd (England) and K Hariharan (India).