Australia were 174 for six, needing a further 137 runs to reach their victory target of 311, at stumps on the fourth day of the first Ashes Test against England at Trent Bridge on Saturday.
Brad Haddin was 11 not out and Ashton Agar one not out. Graeme Swann claimed two wickets.
Stuart Broad, who also claimed two key scalps (of Michael Clarke and Shane Watson) was in the centre of a controversy after his refusal to walk.
Earlier, Australia howled in outrage on Saturday at England batsman Broad's refusal to walk.
But while some newspapers said cricket's ethics demanded he should have done so, others warned that making too much of the controversy could invite accusations of double standards.
Australia were left fuming as Broad enjoyed a massive slice of luck on the third day as England tightened their grip on the opening Test.
Broad had made 37, with England then 297 for seven in their second innings, when he edged teenage debutant spinner Ashton Agar to Australia captain Michael Clarke at first slip.
Australia appealed for the catch but Pakistani umpire Aleem Dar ruled in the batsman's favour as Broad stood his ground. The umpire's decision and Broad's refusal to walk had many of Australia's former players and press in uproar.
The Melbourne Age's Greg Baum said the incident had tarnished the Test.
"If there was a noble voice inside Stuart Broad, it must have been screaming at him to turn around and make for the pavilion," Baum said.
"Or was it that it was shouted down by a baser, but louder and now more common instinct, which recognises no nicety except the distinction between winning and losing? Maybe there was no debate in Broad's mind; maybe nothing happened there."
"But Broad did not walk ... the Australians were flabbergasted, and the Test match came to a screaming halt. And when it started again, the edge had come off the charm of the opening two days of this series, and it will take much diplomacy and graciousness to restore it."
Fairfax Media's Chloe Saltau called it an "appalling umpiring decision", with the crucial reprieve of Broad handing a decisive advantage to England.
Wayne Smith, writing in The Australian, said the incident stirred memories of England's 1987 tour of Pakistan when Broad's father and now ICC match referee, Chris, refused to leave even after being given out by local umpire Shakeed Khan in Lahore.