McGrath finished as man-of-the-match

Matthew Slater fell to Andrew Caddick and Darren Gough removed Ricky Ponting, but Australia completed victory with five sessions to spare and are now one win from retaining the Ashes.

England's gloom was heightened with the news that Graham Thorpe had gone to hospital for a precautionary x-ray after injuring his hand while batting on Saturday.

Mark Butcher and Alec Stewart had begun the day in front of another sell out crowd at Lord's with a flurry of boundaries.

But then McGrath removed Stewart to begin an Australian spell of four wickets in 17 balls at a cost of five runs.

McGrath nipped a ball back from outside off stump to pin Stewart on the back foot and dismiss the former England captain for 28.

It left England 188 for five, still 26 short of making Australia bat again.

And the next ball brought a sixth wicket as Ian Ward sparred off the back foot and was sharply caught by Ricky Ponting at third slip.

Mark Butcher soon followed, chasing a wide ball from Jason Gillespie but only succeeding in edging to Adam Gilchrist for 83 to leave England 188 for seven.

Gillespie finished England off

The merciless McGrath quickly claimed Dominic Cork, luring the Derbyshire all-rounder into a parry outside off stump to present Shane Warne with a simple catch in the now lengthy slip cordon.

Craig White avoided his pair and then drove a couple of fours through the off side off Gillespie as he showed some belated form.

A hook for another four took the tally to 19 off the over and edged England towards a lead, albeit a nominal one.

Caddick edged Gillespie to Gilchrist and and the South Australian wrapped up the innings by having Gough caught by Mark Waugh at second slip.

That typically sharp take was Waugh's 158th Test catch to set a new world record.

England had lost their remaining six wickets for 39 in 48 balls.

Gillespie finished with five for 53, but McGrath was named man-of-the-match for his eight wickets in the one-sided contest.