AUSTRALIA'S Ashes defence is in danger of unravelling after England moved in for the kill on an eventful fourth day of the third Test at Edgbaston.

The touring side's batsmen must knuckle down on the final day to dig Australia out of a hole with the weather forecast for clear conditions in Birmingham and an English side bubbling with confidence.

Needing to score 113 runs just to make England bat again, Australia were 2-88 in their second innings at stumps with Shane Watson (34no) and Mike Hussey (18no) unbeaten.

Already trailing 1-0 in the series, another loss and Australia will have to win the last two matches of the series at Headingley and The Oval to retain the Ashes.

Andrew Flintoff (74) and Stuart Broad (55) earlier looked to bat the tourists out of the contest with brisk knocks that ensured the home side had plenty of time to bowl the tourists out again.

Australia opener Simon Katich (26) missed out again after making another start, caught behind trying to drive a Graham Onions (1-30) ball that moved a little off the pitch.

Ricky Ponting (5) instantly looked uncomfortable against the energetic Graeme Swann (1-24), the off-spinner producing a memorable over to the Australian skipper.

After being unlucky not to have Ponting lbw with the fourth ball, Swann produced a beautifully flighted delivery.

It dragged Ponting forward and the ball spun sharply between bat and pad to hit middle stump.

Australia looked in all sorts of trouble at 2-52 before scratching their way to a late close still 25 runs in deficit.

Earlier, Flintoff put his ordinary bowling display in Australia's first innings behind him with a pulsating 79-ball knock that included 10 fours and a six as England scored 376 in response to Australia's 263.

With England looking vulnerable at 5-168, Flintoff arrived at the crease oozing confidence and even initiated a few words with a reinvigorated Mitchell Johnson (2-92) to make his presence felt in his final Test series.

Australia's seamers had done a terrific job of keeping it tight until Shane Watson's (0-23 off three overs) introduction with the total at 5-201.

Flintoff feasted on his modest bowling and, with paceman Peter Siddle (3-89) wayward as well, the big Lancastrian and Matt Prior (41) picked off 48 runs off six overs in their match-turning, sixth-wicket stand of 89 off 97 balls.

Even after Flintoff departed, the English tail continued the healthy scoring rate with the last three wickets coming at a cost of 69 runs thanks to Broad's hard-hitting innings.

Ben Hilfenhaus (4-109) was the pick of the bowlers while Johnson was far better than his figures suggested.

The left-armer produced some hostile spells and was more than happy to get in the faces of the opposition, having words with Flintoff, Swann and Broad.

In one fiery moment late in the England innings, Johnson and Broad stood toe to toe and exchanged words after Broad had smacked the bowler down the ground for four.