Team New Zealand (right) out-strip rivals BMW Oracle in Valencia

The Kiwis took advantage of a strong wind on the 'Romeo' course and tacked early to beat the American sailors by one minute and 34 seconds.

New Zealand chose to face Desafio Espanol in the best-of-nine semi-finals while Oracle take on Luna Rossa.

The winner of the final go on to face America's Cup holders Alinghi in June.

New Zealand skipper Dean Barker said of his decision to chose the host team: "We've had good racing with the Spanish.

"They're a fast team, sailing well and we're looking forward to racing them in the semis."

The New Zealanders laid down their credentials with a battling sailing display in the final round-robin race.

After an even start on the northern 'Romeo' course, BMW Oracle took the early lead.

But the Kiwis responded by tacking to the middle halfway up the first lap to lead by 54 seconds at the first marker.

The American yacht tacked too late to keep pace and the New Zealanders drove away for a big finish despite a small tear in their sail.

Desafio Espanol lost to Luna Rossa by one min 54 secs and the host team were also penalised after the boat's spinnaker touched the first marker.

Round robin second stage, flight 11 results:

BMW Oracle Racing (US) 0 Team New Zealand 2
Victory Challenge (Swe) 0 Mascalzone Latino (Ita) 2
Desafio Espanol (Spa) 0 Luna Rossa (Ita) 2
United Internet Team Germany 0 +39 (Ita) 2
Areva (Fra) 0 Team Shosholoza (SA) 2
Bye: China Team

Round robin standings (points):

Team New Zealand 38
BMW Oracle 37
Luna Rossa 35
Desafio Espanol 29
Victory Challenge 26
Mascalzone Latino 22
Team Shosholoza 20
Areva 17
+39 12
United Internet Team Germany 5
China Team 3