England beat Australia by just two runs to win a dramatic second Ashes Test on the fourth day at Edgbaston here Sunday and level the series 1-1.

England's victory, the closest in Ashes history, was achieved with more than a day to spare, and more than made up for the crushing 239-run defeat at Lord's last month in the opening match of the five Test series.

Australia resumed Sunday on 175 for eight, still needing a further 107 runs to win.

But their last two wickets added 104 to take them within sight of a famous victory.

Brett Lee, who top scored with 43 not out, almost saw Australia home after stands of 56 for the ninth wicket with Shane Warne (42) and 59 for the tenth with Michael Kasprowicz 20.

England, who had dominated most of a game they so nearly lost, won through when Kasprowicz gloved a Harmison delivery down the leg-side and was caught by wicketkeeper Geraint Jones.

Earlier Warne and Brett Lee launched a superb rearguard action lasting 56 balls with both batsmen scoring well-struck boundaries.

But after Warne trod on his stumps against all-rounder Andrew Flintoff, Australia still needed 62 runs to win.

Then Simon Jones at third man dropped last man Kasprowicz on 18 off Flintoff with 15 runs needed.

"It was an epic game and full credit to the way Australia came out this morning," said England skipper Michael Vaughan.

"We could not afford to have gone down 2-0 in the series. In a game like this you don't want to lose like that.

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"Now we will go to Old Trafford with a bit of momentum."

Shane Warne was 20 not out and Lee yet to face when play began Sunday after Michael Clarke had his stumps knocked over by fast bowler Stephen Harmison off the last ball of Saturday's play.

Both Warne and Lee gave England several anxious moments with some well-struck boundaries before Warne, walking across his stumps on 42, trod on his own wicket with his back foot while facing man-of-the-match Flintoff.

The Lancashire all-rounder, who took four for 79, produced a magnificent display that was vital to England's first Test victory against Australia with the Ashes still up for grabs since their win at Edgbaston eight years ago in the 1997 series opener.

After scoring 68 in England's first innings 407 and then taking three for 52 in Australia's reply of 308, Flintoff starred in dramatic style with both bat and ball on Saturday.

First he struck a whirlwind 73 off just 86 balls with four sixes (he hit nine in the match) and six fours in a total of 182 where no other batsman

scored more than 21 although Simon Jones (12 not out) played his part in a valuable last-wicket stand of 51 in just 49 balls.

Flintoff's Saturday display was all the more impressive given he'd injured his left shoulder early in his innings when on seven after following through with a square cut off Shane Warne.

And still far from fully fit, he bowled Justin Langer with his second ball of the day.

Then five deliveries later the Lancashire paceman had Australia captain Ricky Ponting caught behind for nought off a fast leg-cutter.

The day featured several high quality performances from players on both sides, including Warne's six for 46 that left the leg-spinner just one short of becoming the first bowler to take 600 Test wickets.

Australia, winners of the last eight Ashes series, suffered a major blow before this match started when they lost leading fast bowler Glenn McGrath, who took nine for 82 at Lord's, during the warm-up before play on the first day Thursday after he trod on a cricket ball on the outfield and tore ligaments in his right ankle.

Nevertheless, Ponting chose to field first after winning the toss.

"At the end of the day we got close, but all credit to England," the Australian skipper said. "They played very well throughout this Test match.

"It says a lot about the character of our team they way we fought back. We gave ourselves a glimmer of hope but unfortunately we weren't quite good enough."

The third Ashes Test match starts at Flintoff's Old Trafford home ground on Thursday.

SCOREBOARD

Final scoreboard on the fourth day of the second Ashes Test between England and Australia at Edgbaston on Sunday:

ENGLAND: First innings 407 (Trescothick 90, Pietersen 71, Flintoff 68; Warne 4-116, Kasprowicz 3-80)

AUSTRALIA: First innings 308

(Langer 82, Ponting 61; Flintoff 352, Giles 3-78)

ENGLAND: Second innings 182 (Flintoff 73; Warne 6-46, Lee 4-82) AUSTRALIA: Second innings

(overnight 175-8)

Langer b Flintoff 28

Hayden c Trescothick b S Jones31