Australia had been red-hot favourites to avenge defeat on home soil in the 2003 World Cup final, but Englands rampant forwards had other ideas.

They smashed the Wallabies into submission, dominating every collision area and then relying on Jonny Wilkinsons boot - as in Sydney four years ago - to strike gold.

Wilkinson kicked four penalties, his second two kicks wiping out a 10-6 interval advantage, to become the all-time World Cup record points scorer.

Australia claimed the quarter-finals solitary try - a 33rd minute LoteTuqiri touchdown - but they have now exited three of the last four World Cups at Englands expense.

It was a remarkably courageous display, and England now move on to Paris, where host nation France or tournament favourites New Zealand await them next Saturday.

The win, coming just three weeks after South Africa smashed them 36-0, will rank among the greatest in Englands 136-year Test history.

It was their 599th Test match, yet rarely can an England side have triumphed in the face of such adversity, dumping out a strongly-fancied Wallabies side.

Wallabies skipper Stirling Mortlock had a chance to win it right at the death, but his 50-metre penalty sailed wide and England could begin prolonged celebrations.

England had heroes everywhere they looked - lock Simon Shaw and prop Andrew Sheridan proving perhaps the pick - and Australia ultimately had no answer in what was one of the great critic-defying displays.

Englands opening quarter was perhaps their best 20 minutes of the competition, even though they ended it trailing Australia 3-0.

Referee Alain Rolland awarded the first four penalties to Australia, but Mortlock missed two of three shots at goal as England sought scrummaging dominance.

Both front-rows offered plenty of advice in Rollands direction, which came as no surprise given how the scrum had attracted considerable pre-match banter following Englands destruction of the Australian front-row at Twickenham two years ago.

Englands attacking game proved far more menacing than at any other time in the competition, with Wilkinson and Mike Catt carving open Australias midfield defence.

And with a threatening territorial position established, Wilkinson rifled over two penalties in three minutes to overtake Scotlands Gavin Hastings World Cup mark of 227.

The much-vaunted Wallabies back division did not leave first gear until 10 minutes before half-time, but it finally fired in spectacular fashion as full-back Chris Lathams incisive running sparked a spell of prolonged pressure.

Australia, with veteran George Gregan calling the shots, patiently moved through phase play, and although England defended valiantly, they could not prevent Tuqiri - the Wallabies 2003 World Cup final try scorer - squeezing over wide out.

Mortlocks conversion knocked some stuffing out of England at 10-6 adrift, underlined when Wilkinson missed - for him - two relatively routine penalty opportunities.

But England were still in contention, starting the second period just four points adrift, and Wilkinson reduced the gap by completing his penalty hat-trick, despite taking a knock just seconds beforehand.

England kept plugging away, and a fourth Wilkinson penalty on 60 minutes put them 12-10 ahead, renewing hope among their sizeable army of supporters they could complete a stunning victory.

Next up it is the All Blacks or France for England.