Jubilant England players after levelling the series 1-1 against Australia at Edgbaston on Sunday. (Reuters)

Birmingham: England beat Australia by just two runs to win the second Ashes Test on the fourth day at Edgbaston on Sunday.

England’s victory, the closest in Ashes history, was achieved with more than a day to spare, and saw them level the five-Test series at 1-1 after their 239-run defeat at Lord’s last month.

Australia resumed the day 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 an unbeaten 43, 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 legside and was caught by wicketkeeper Geraint Jones.

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

But after Warne trod on his stumps against allrounder 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.

Warne was 20 not out and Lee yet to face when play began on 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 allrounder, 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.

During a whirlwind 73 off just 86 balls with four sixes, Flintoff 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. Jones shared a valuable last-wicket stand of 51 in just 49 balls.

Simon Jones fined

Meanwhile, England fast bowler Simon Jones was fined 20 per cent of his match fee for gesturing at Matthew Hayden after dismissing the batsman.