Dean Headley engineered one of the most dramatic victories in Test history as Australia lost their last seven wickets for just 32 runs in 79 balls to allow England to snatch a thrilling 12-run triumph in fourth Ashes Test at the MCG on Tuesday.

Australia's first innings hero Steve Waugh stood in disbelief at the non-striker's end when Darren Gough trapped Glenn McGrath lbw for a duck at 7:32pm local time to cap an unforgettable final session that lasted four hours and two minutes. Chasing 175 for victory to extend their series lead to 3-0, Australia seemed to be cruising at 3-130 when Headley (6-60) ignited an astonishing collapse.

After England were dismissed just before tea for 244, Australia stumbled early in their chase, losing the wickets of openers Mark Taylor (19) and Michael Slater (18) cheaply. Slater was first man out when trapped plumb lbw by Headley, who featured again at fine leg when he caught an attempted pull shot from Taylor off Alan Mullally with the score 2-41.

Mark Waugh (43) and Justin Langer (30) then settled Australia's nerves and seemed to guarantee victory by adding 62 for the third wicket, before Mullally struck again thanks to a spectacular catch by Mark Ramprakash, which visibly inspired the Englishmen. Mullally (2-20) had earlier watched Graeme Hick at second slip drop Langer before he reached double figures, but exacted some revenge when the left-hander launched into a pull shot which seemed to travelling wide of Ramprakash, who dived full length to his right, stuck out his right hand and caught the ball inches off the ground.

England's hopes were fuelled when Mark Waugh was caught by Hick off Headley with the score on 130, and Darren Lehmann (4) dubiously judged caught behind off the same bowler with the score 140. Headley then claimed Ian Healy (caught by Hick) and Damien Fleming (lbw) for ducks to have Australia reeling at 7-140. Test debutant Matthew Nicholson (9) joined Steve Waugh (30 not out) and the pair batted with composure to add 21 for the eighth wicket, and had seemingly snuffed out another England comeback as the shadows lengthened over the MCG. But Headley once again, in his Test-best bowling performance, struck again and had Nicholson caught by keeper Warren Hegg.

Stuart MacGill (0), fresh from his career-high 43 in the first innings, lasted just two balls before Gough (2-54) bowled him with a yorker, the same delivery which claimed McGrath two balls later.

As Waugh stood dumbfounded among the calamity around him, McGrath perhaps trudged off the MCG contemplating his earlier bowling tactics which contributed to the England duo of Mullally and Angus Fraser adding a decisive 23 runs for the last wicket.

England's lower-order batted with a quality resembling resolve to set Australia a challenging target as Hick's belligerent half-century and a swashbuckling 16 from Mullally, who quadrupled his series aggregate, guided England to 244 all out. The target was always likely to test the Australians, with vice-captain Steve Waugh admitting in the morning that any target above 150 would be difficult.

After resuming on 2-65, England's hopes were rocked when they lost Headley and Alec Stewart inside the first half-hour with the score 4-78. Headley (1) was comprehensively bowled by McGrath (2-56) then dangerman Stewart (52) was caught by Slater at silly point off MacGill (3-81) to leave England teetering.

Just as England's two most reliable batsmen Nasser Hussain and Ramprakash (14) seemed to have steadied the tourists' second innings with a 49-run stand, Nicholson (3-56) struck. The West Australian took the vital wicket of Ramprakash with a perfect off-cutter which clipped the off stump.

After going to lunch on 5-174, England added only four runs before Hussain (50) pinned his ears back to a wide Nicholson delivery, only to steer the cut straight to Slater at point, who gleefully accepted his third catch of the innings.

After Hussain departed, Hegg capped an inglorious debut with the bat when he was the seventh man to depart with the score on 202. Hegg (3 and 9) fell to an almost identical shot to Hussain off Nicholson, but instead wedged the ball to MacGill who took a smart catch at third man.

MacGill then tasted success with the ball in hand when he had Gough (4) caught by Langer at short leg. Top-scorer Hick followed four balls later after a registering his 17th Test half-century off just 72 balls when a Damien Fleming (2-45) inswinging yorker uprooted his leg stump. He entertained the crowd with some bludgeoning pull shots among his eight boundaries, but was pushed into the background by Mullally's cameo.

The left-arm paceman, who had scored five ducks and one nick over slips for four in six innings this series, strode the crease and was peppered with bouncers by a fired-up McGrath curiously bowling around the wicket. McGrath seemed more intent on intimidation but when he eventually pitched up Mullally replied by smashing him straight down the ground for consecutive fours, to rapturous applause from the Barmy Army. Mullally added an invaluable 23 runs for the last wicket with Fraser (7 not out) before top-edging an attempted pull off McGrath straight into the air, which the NSW paceman was determined to grab, knocking over Langer in the process.

After the ninth-closest victory in history, the buoyant Englishmen head to the fifth and final Test in Sydney starting January 2 with a chance, improbable as it may seem, to square the series. The seemingly invincible Australians, on the other hand, will be trying to come to terms with exactly how they snatched defeat from the jaws of victory

© 1998 CricInfo/ninemsn