Smith back to form in big Australian Open title bid

The former world No.2's slump started 12 months ago when he imploded during the second round of the Open, crashing from one off the lead to finish the day eight shots back.

But Smith could finish an otherwise forgettable year as the first home grown champion since Matt Jones in 2019, heading into Sunday's final round two shots behind Denmark's Rasmus Neergaard-Petersen.

"It's just nice being in contention, it's been a while since I've had this feeling to be honest," the 2022 British Open champion said.

"I'm looking forward to tomorrow - I love that it's here, I love that it's at Royal Melbourne, I love that it's the Australian Open.

"I couldn't think of a better place to get back into form."

Queenslander Smith overtook Min Woo Lee as the top local hope after a sparkling five-under 66, highlighted by an eagle on the 14th to sit at 12 under.

Putting on a short game masterclass, Smith had the sole lead with a birdie on the 17th, with his big gallery among the 30,187 fans on the sandbelt course showing their full appreciation.

But he dropped a shot on the 18th while overnight leader Neergaard-Petersen (66) reclaimed the front-running with four birdies in his last five holes.

With the Dane at 14 under, Smith is in a group two shots back alongside fellow LIV golfer, Mexico's Carlos Ortiz (66) and South Korean Si Woo Kim (65).

Smith described his motivation to lift the Stonehaven Cup as "25 out of 10", silencing the critics by ending his poor year on a positive note.

"I just feel like it's been a bit of a crappy year," LIV Golf's Ripper GC captain said.

"It would shut a few people up - I mean, not that's really the goal ... the motivation is just for myself to go out there and play well under these conditions.

"It's been a while, so yeah, it'd just be nice to do that."

Australians Adam Scott (68) and Lee (69) are both at 10 under, while Lucas Herbert (65) had one of the rounds of the day to sit another two shots back.

Lee was third after the second round but sank down the leaderboard on the back of four bogeys, with three coming on the front nine amid some wild shots off the tee.

But the West Australian delivered under pressure, nailing four successive birdies between 12 and 15 to remain a major threat.

Lee said he felt like a popstar with young fans calling for his autograph, but was "proud" to be involved.

"It is crazy ... one of the best crowds out there, so I'm pretty proud of to be Australian and yeah, this is pretty cool to see," the 27-year-old said.

Tournament drawcard Rory McIlroy is five under heading into the final day, his third round hindered by a double-bogey on the second hole when his ball was bizarrely caught under a discarded banana peel.

The grand slam winner again produced an impressive back nine with four birdies for a 68 but his tournament hopes are all but over, nine shots off the pace.

Smith was a regular figure on the driving range and practice putting green this week, determined to find some form, and his hard work appeared to finally pay off.

He matched the leaders with a birdie on the par-four 12th and then emerged as the sole front-runner two holes later when he chipped in to eagle the par-five 14th.

It looked like he would take the lead into the final round before his bogey on 18 and Neergaard-Petersen's late surge.