Australia have lost their ranking as the world's leading one-day international side after a five-wicket defeat to New Zealand in a thrilling match in Auckland on Sunday.

New Zealand successfully chased down Australia's record Eden Park total of 336 for four with eight balls to spare to take an unbeatable 2-0 lead in their Chappell-Hadlee series and condemn the Australians to a fourth straight defeat.

South Africa, who beat Pakistan 3-1 in a recent home series, have become the first team to replace Australia at the top of the rankings since they were introduced in October 2002.

The Australians looked to have rebounded from their humiliating 10-wicket loss in Wellington on Friday after posting a massive total with stand-in captain Mike Hussey blasting 105 and Brad Hodge 97 not out.

But New Zealand reached their victory target in the 49th over after Ross Taylor made 117 and Peter Fulton 76 not out.

The third and final match of the series will be played at Hamilton on Tuesday.