New Zealand kept their hopes in the first Test alive as Glenn Phillips took five wickets to bowl Australia out and set a target of 369 on the third day in Wellington.

Nightwatchman Nathan Lyon was the unlikely top scorer for Australia, falling on 41 with his first Test 50 in sight.

Cameron Green continued his form with 34, but all-rounder Phillips spun his way to five wickets and was on a hat-trick after removing Travis Head for 29 and dismissing Mitch Marsh with the next ball.

Phillips finished with 5-45 as Australia were all out for 164.

The Australians struck early in the Blackcaps innings, Lyon dismissing Tom Latham and Kane Williamson for single-digit scores, before part-timer Head removed Will Young for 15.

Rachin Ravindra (56 not out) and Daryl Mitchell (12 not out) dug in for the rest of the day.

Two days remain with New Zealand requiring 257 pull off what would be an incredible victory.

A century last-wicket stand, a top-order collapse and a comedy of errors run out conspired to put Australia in control of the first Test against New Zealand.

Having had the visitors in early trouble on the first day in Wellington, the hosts saw last-wicket pair Cameron Green and Josh Hazlewood frustrate them for much of the morning session.

They then saw their top order blown away and only some counterattacking lower down got them within 204 runs of their visitors.

Having reached his century off the penultimate ball of day one, Green added another 71 runs as he reached a Test-best 174 not out – last man Hazlewood weighing in with 22 as they took the overnight score from 279 for nine to 383.

Mitchell Starc was first to strike in the New Zealand inning as he bowled Tom Latham for five before the hosts lost talismanic batsman Kane Williamson without scoring.

Williamson, who scored seven centuries in his last seven Tests, and Will Young collided in the middle of a quick single and Marnus Labuschagne’s direct hit sent the former captain packing.

Rachin Ravindra followed for a duck as he cut Hazlewood to Nathan Lyon, Young and Daryl Mitchell also departing cheaply to leave New Zealand 29-5.

Glenn Phillips hit a counterattacking 71 off 70 balls alongside Tom Blundell (33) but only Matt Henry’s 42 offered much more resistance, Lyon collecting four for 34 as the hosts were dismissed for 179.

Australia opted against enforcing the follow on and lost Steve Smith without scoring off the third ball, bowled by Tim Southee.

Southee struck again as Labuschagne’s poor run continued, caught behind for two, but Usman Khawaja and Lyon saw Australia through to stumps at 13-2 – a lead of 217.

Cameron Green hit a defiant unbeaten 103 as Australia were restricted to 279 for nine on the opening day of the first Test in New Zealand.

Matt Henry claimed four wickets as the home side’s seam attack took full advantage of a green wicket in Wellington.

Henry claimed the wickets of openers Steve Smith for 31 and Usman Khawaja for 33 as Australia limped to 85 for four, the struggling Marnus Labuschagne and Travis Head both managing just a single.

Mitchell Marsh provided some support to Green, handed the pivotal number four spot after Smith’s elevation to open following the retirement of David Warner, before Henry had him caught behind for 40.

Green hit 16 boundaries, accelerating through the second half of the day with wickets falling regularly at the other end with variable bounce and seam movement making batting difficult.

Nathan Lyon was the last to go when he was caught behind to give Henry his fourth wicket just before stumps.

There was still time for Green to reach his second Test century, moving through the 90s with three boundaries in the day’s final over.

Steve Smith will take over from the retired David Warner as Australia’s new Test opener after convincing selectors he was “willing and hungry” to embrace a new challenge.

Smith batted as low as number nine on Test debut and has taken every spot up to number three in the course of a prolific career. Now he will head the innings for the first time having publicly pitched to replace Warner.

The 34-year-old’s move will accommodate the return of all-rounder Cameron Green in the top six for the forthcoming series against the West Indies, with Matt Renshaw picked as reserve batter and Cameron Bancroft’s hopes of returning to the Baggy Green fold dashed.

Head selector Andrew McDonald indicated all parties view the switch as a long-term move and praised the former captain for embracing change after 105 Tests and almost 10,000 runs lower down the order.

“It’s selfless that someone who’s had such success in one position or a couple of positions in the middle order, that he’s willing and hungry to have a crack at something different,” McDonald told reporters.

“For someone who has achieved as much as he has over such a long period of time across all formats, it’s a challenge or an itch he’d like to scratch and ultimately for us, as a team, it’s something that fits.

“It provides an opportunity to slot Greeny into number four where he’s had success for Western Australia. Ultimately we are trying to pick our six best batters.

“The regard in which we hold Cameron and the way the rest of that batting order is functioning left us feeling we have someone we think is pretty talented who was potentially going to find it pretty hard to get any Test cricket in the next 12 months or so.”

Australia all-rounder Cameron Green admits his side “got out of jail” in their Ashes-clinching draw at Emirates Old Trafford.

A 2-1 lead with one more game to play at the Kia Oval this week means the tourists retain the urn as holders, but they were spared a winner-takes-all decider by a rain-ruined end to the fourth Test in Manchester.

England were well in control after piling up a 275-run first-innings lead, but with just 30 overs possible across the last two days they were prevented from converting their dominance into a series-levelling win.

Green, who was one of Australia’s not out batters as the washout unfolded, told cricket.com.au: “I think we definitely got away with one there.

“There’s no point denying it. Whilst we were behind the game, and you never know what would have happened, cricket is a funny game, but England dominated this one. We definitely got out of jail.

“We didn’t play our best game. The rain gods were in our favour the last couple of days. You just take it and move on to the next game.”

Green’s place is under some doubt for the fifth Test, with fellow all-rounder Mitchell Marsh in seemingly undroppable form and Australia pondering a return for spinner Todd Murphy. Whether he makes the XI or not, Green believes the tourists will be focused on completing a first outright win in England for 22 years.

Australia were 2-1 ahead going to the Oval four years ago and paid the price for over-exuberant celebrations before the final act as England squared the scores.

“The last time they were here they had a win here to retain the Ashes, but it’s a bit different this time around,” said Green.

“I’m sure a few guys are hurting from last time. We’ll keep it level-headed and looking forward to the next game.”

Australia put themselves in a strong position in the fourth Test against India after Usman Khawaja and Cameron Green's impressive partnership and a late surge from Nathan Lyon and Todd Murphy saw them post 480 in their first innings.

Resuming day two on 255-4, Khawaja (180) and Green (114) piled more runs on to frustrate the hosts with a fifth-wicket partnership of 208, while Australia's tail also wagged.

Ravichandran Ashwin produced figures of 6-91 to stop the tourists from doing even more damage, before Rohit Sharma (17 not out) and Shubman Gill (18 not out) made a promising start to India's reply, ending the day 36-0, still trailing by 444 runs.

Khawaja and Green continued their impressive partnership from day one, with the latter hitting his maiden Test century before a sweep attempt saw him glove one from Ashwin to Srikar Bharat.

Ashwin soon found his groove as he removed Alex Carey for a duck and Mitchell Starc for six, while Khawaja was finally out lbw after a review off the first ball after the tea interval from Axar Patel.

Lyon (34) and Murphy (41) were in the mood to play some shots though, and had plenty of joy as they struck 11 fours between them in a ninth-wicket partnership of 70, before both fell to Ashwin.

The surface in Ahmedabad has been kinder to batters than others in the series, and Rohit and Gill had few problems seeing off Australia's bowling attack in their 10 overs before close.

Gill launched the first six of the match in the final over of the day off Lyon, but India still have plenty to do to get close to the Baggy Green's first innings total.

Khawaja shows patience is a virtue

Khawaja had already reached three figures on day one, but continued his impressively mature innings alongside Green on Friday, lasting 422 balls in all, the most faced of any Australian batter in an innings in India in Test history.

After the day ended, Green said: "Ussie helped me so much out there. It is really special."

Ashwin overtakes Kumble in Australia battles

It must be a strange feeling for a bowler to post numbers as impressive as 6-91 but see the opponents still score almost 500 runs.

It may be consolation for Ashwin that his 113 wickets in total means he has surpassed Anil Kumble (111 wickets) and equalled Lyon to become the joint-leading wicket-taker in the Border Gavaskar Trophy.

Australia are persisting with their three-pronged spin attack of their third Test against India, while the hosts made two changes in their side in Indore on Wednesday.

Trailing 2-0 in the series, and with captain Pat Cummins returning home for personal reasons, Australia welcomed back Mitchell Starc from a finger injury as the only full-time pacer bowler in the line-up.

Also coming into the visiting side is all-rounder Cameron Green, with the injured David Warner joining Cummins as the outs, leaving Travis Head and Usman Khawaja to open the batting. Matt Renshaw had replaced Warner mid-game in the second Test as a concussion sub.

Retaining their places are the spinning trio of Nathan Lyon, Todd Murphy and Matt Kuhnemann, while the addition of Green for Warner gives the Australians another weapon in their pace attack.

For India, K.L. Rahul was dropped and Mohammed Shami was rested, with opening batsman Shubman Gill and fast bowler Umesh Yadav taking their place. India won the toss and elected to bat.

Pat Cummins does not believe Australia opener David Warner's place at the top of the order is under threat for the second Test against India.

Warner failed twice as the tourists were hammered by an innings and 132 runs in the first match of the Border-Gavaskar series in Nagpur.

The 36-year-old had eased the pressure on himself by scoring a magnificent double century in the Boxing Day Test against South Africa at the MCG, and Australia captain Cummins has given his backing to the left-hander.

He said on the eve of the second Test at Arun Jaitley Stadium: "I'm not a selector. I don't think they've had a meeting but I'm sure Davey will be there.

"You saw at the Boxing Day Test when he puts pressure back on the opposition, he's pretty hard to bowl to. You don't get as many bad balls, so he knows that. I'm sure that'd be part of his plan.

"He has been batting really well here. Even in the lead-up, I thought he was fantastic. I know there's a lot of talk about spin bowling through the middle but with that new ball it's sometimes the hardest time to bat as well."

There remains uncertainty over whether paceman Mitchell Starc and all-rounder Cameron Green will be fit to take their place in the side in Delhi on Friday.

The duo have been out with finger injuries and Cummins says the tourists are mulling over their options, with Starc potentially overlooked in favour of a third spinner as Matthew Kuhnemann stands by to make his debut and Ashton Agar awaits his chance.

Asked about playing three spinners, Cummins said: "I think there's a conversation. We'll work that out by the end of today, I hope.

"[Starc] is one of the world's premier bowlers in these types of conditions. We'll see. The wicket looks like it might turn a little bit. I thought last week with two pacers, that attack functioned quite well, but I think whether it's Starcy, another spinner, Scott [Boland], variety in the attack does help."

Cummins said of Green: "Having a right-hander helps and him providing our fifth bowling option also helps. He's a big player. It certainly helps the team function well from batting and bowling.

"You have got to be able to perform as well. He's still coming back from that injury. He's only had [one] session where he's catching with a hard ball. He had a really good session yesterday. We will see how he pulls up."

Mitchell Starc would like to be "further down the road" with his recovery from a finger injury but the Australia quick feels he has a "good chance" of being fit for the second Test against India.

Starc has been out since suffering an injury blow during the victory over South Africa in the Boxing Day Test.

The left-armer joined up with his team-mates in Delhi as they prepare for a second Test that starts at Arun Jaitley Stadium on Friday following a hammering by an innings and 132 runs in the opener in Nagpur.

Starc's injury has not healed as quickly as he had hoped, but the paceman thinks he could still make his return when the tourists attempt to hit back in the battle for the Border-Gavaskar Trophy.

He said: "There's still a fair bit of restriction there. Still lacking a bit of strength having been in a splint for six weeks.

"But it's progressing - not as fast as I would have liked, but it's as planned in terms of the medical stuff. There's a few boxes to tick, but it's on track.

"I'd like to be a little further down the road.

"Still a good chance. It'll come down to how it reacts by the end of the day, how the medical staff see it, how the selectors and Pat [Cummins] and Ronnie [Andrew McDonald] feel about it as well.

"I'll do everything I can to be fully available for selection. Then it's a discussion for the rest of the group involved."

All-rounder Cameron Green is also hoping to make his comeback in the second Test after being sidelined by a broken finger.

Batter Shreyas Iyer is back in the India squad after recovering from a back injury.

Pat Cummins defended Australia's team selection and sees no reason to "reinvent the wheel" after they suffered a humiliating defeat in the first Test against India.

The tourists were hammered by an innings and 132 runs on day three at the Vidarbha Cricket Association Ground, where they were bowled out for only 91 in their second innings.

That was their lowest Test total in India, spinner Ravichandran Ashwin doing the bulk of the damage in Nagpur on Saturday with figures of 5-37.

Eyebrows were raised when batter Travis Head was omitted from the side for the opening Test, with Peter Handscomb and Matt Renshaw preferred to a left-hander who is the number-four ranked Test batter in the world.

Renshaw and Handscomb failed to make their mark in the middle order, but Australia captain Cummins has no regrets over the team that was picked.

The fast bowler said: "We were confident it was our best 11 this week. We know the quality Trav is. He's a huge part of this team but we were confident in the 11 guys out there.

"He's been really good around the group. He's been out the back working really hard on his game like he always does."

Mitchell Starc is set to return for the second Test in Delhi after recovering from a finger injury, but doubts remain over fellow quick Josh Hazlewood (Achilles) and all-rounder Cameron Green (broken finger).

"Starcy lands today or tomorrow into Delhi," Cummins said. "I think Joshy might not quite be ready for Delhi. He's getting up and running now, he's pretty close, but I don't think he'll be quite ready for Delhi.

"Greeny's a bit of a wait-and-see. We're still hoping. He's had a couple of good hits out here. His bowling is pretty good, so over the next couple of days we'll assess it."

Australia remain on course to play in the World Test Championship final, with India potentially their opponents at The Oval in June, so Cummins is not reaching for the panic button after a crushing loss.

He said: "I think sometimes it's almost easier to put those kind of losses behind you. You are looking at small margins. You have to have a hard look at your game and the big strides you need to change to give yourself the best chance next week.

"We've had a really good run in the last 12 months. There hasn't been many losses in that changing room. I don't think we need to reinvent the wheel. It's just tweaking different approaches to how we play and maybe particular methods."

Meanwhile, India all-rounder Ravindra Jadeja – the player of the match in Nagpur – has been fined 25 per cent of his match fee by the International Cricket Council and given one demerit point for applying soothing cream to his finger without permission from the umpires on day one.

Cameron Green looks set to miss Australia's first Test against India, with vice-captain Steve Smith suggesting it will be unlikely the all-rounder features in Nagpur.

Green suffered a fractured finger during the Boxing Day Test with South Africa in December, and has not played a first-class match since then.

He sustained a further knock to the injury while in a training camp ahead of Thursday's opening match, casting further doubt on his participation.

Now, Smith has indicated it will be a long shot for Green to feature at Vidarbha Cricket Association Stadium, with the tourists reluctant to rush him back into the fray.

"I don't think he is [going to play]," he said. "I don't think he has even faced fast bowlers. So I dare say he won't be playing.

"Who knows [though]? I'm not entirely sure. We'll wait and see. But it's unlikely, I think."

Having eschewed a warm-up game ahead of the four-match series, Australia will be heading into their clash in Nagpur with only a few days on Indian surfaces under their belt.

Smith is reluctant to speculate how the pitch will affect his side's selections when it comes to their bowling attack, adding: "It's pretty dry.

"There's a section that's quite dry. Other than that, I can't really get a good gauge on it. I don't think there will be a heap of bounce in the wicket.

"I think for the seamers, it will be quite skiddy and maybe [have] a bit of up-and-down movement as the game goes on. The cracks felt quite loose. We'll wait and see when we get out there."

Australia head coach Andrew McDonald has revealed Cameron Green has an "outside chance" of being fit for the first Test against India as he recovers from a broken finger.

The all-rounder has made quick progress ahead of a first match of the four-match series that starts at the Vidarbha Cricket Association Stadium next Thursday.

McDonald suggested Green may be selected as a specialist batter in Nagpur.

"He's made some significant steps forward in the last couple of days, probably to my surprise, so there's still an outside chance that everything going well he might be on the team sheet," McDonald told reporters in Alur on Saturday.

"I wouldn't say he was in discomfort with his bowling, one of the deliveries jarred the bottom of the bat and that can create discomfort for anyone but there's a little bit of awareness around that finger."

Paceman Mitchell Starc will not play in the opening Test after he sustained a damaged middle finger during the Boxing Day Test against South Africa at the MCG.

Australia captain Pat Cummins says no decision has been made on the team to take on India.

"I wouldn't say it [two spinners] is a given, it's very conditions dependent so particularly this first Test, once we get to Nagpur we'll see," Cummins said.

"I think sometimes talking about a couple of spinners you forget how good a lot of our fast bowlers have been in all conditions. Even some of the SCG wickets, there hasn't been a lot in them for quick bowlers but the quick bowlers have found a way.

"We've got plenty of bowling options here - finger spin, wrist spin, left-arm, Starcy when he comes back - so we'll obviously pick the bowlers we think can take 20 wickets, how we are going to split that up we aren't 100 per cent sure yet."

Australia announced an 18-player squad for their upcoming tour of India, with Mitchell Starc to miss the first Test of the series due to a finger injury.

Starc suffered tendon damage and a fracture to the middle finger on his bowling hand during the Boxing Day Test against South Africa at the MCG, although he was able to tough it out and return to the field.

The 32-year-old was ruled out of the final Test of the series in Sydney and selectors confirmed on Wednesday that Starc's recovery will mean he will not fly over to India with the rest of Australia's squad.

In more positive news, Cameron Green is expected to make a full recovery in time for the series opener on February 9, having undergone surgery on a finger injury of his own.

"Greeny, we're hopeful that he should be right for the first Test," chair of selectors George Bailey said.

"But if not that, that's okay. We feel like we've got the squad that can cover that. 

"Starcy's not expected to be available for the first Test, in fact he's going to come across to India a touch later."

If there is one area of the squad where Australia could afford an injury, it is in the fast-bowling department.

With Starc out, captain Pat Cummins will likely be joined by Josh Hazlewood and Scott Boland in the pace attack, while the rapid Lance Morris has been named in the squad and might feel overdue for a look-in.

Australia also named four spinners, with veteran campaigner Nathan Lyon joined by Ashton Agar, Mitchell Swepson and uncapped off-spinner Todd Murphy.

Bailey addressed the condition of back-up wicketkeeper Peter Handscomb, who was forced to retire hurt immediately after hitting a six while playing for St Kilda in a T20 on Tuesday, having been nailed in the hip the previous over.

"Pete's got a scan tomorrow morning to check on that," Bailey said. "He's confident it's nothing too serious.

"A bit of a mishap. He just copped a ball on the back hip, and then three balls later he dispatched one and just felt something give a little bit in there.

"There's still quite a bit of time between now and when we depart and even when the first test is, so we'll work through that as we get more information."

Bailey confirmed Handscomb is still third in the pecking order, but selectors have opted to give Josh Inglis the tour off to allow him to play some first-class cricket.

"Josh is absolutely still our backup or number two wicketkeeper," he said. "But we're also conscious that he has been on a number of tours and hasn't actually been able to play a great deal of cricket."

The first Test of of the four-match series starts in Nagpur on February 9.

Cameron Green thinks he and Mitchell Starc will be "touch and go" to be fit for the start of a four-match Test series against India.

Green underwent surgery after breaking his right index finger during a victory over South Africa in the Boxing Day Test at the MCG.

Starc damaged his middle finger in the same match in Melbourne, with both players missing out as Australia attempt to secure a 3-0 whitewash of the Proteas at the SCG.

Australia start the first Test against India in Nagpur on February 9 and Green believes that contest could come too soon for himself and paceman Starc.

He told SEN WA: "I think me and Starcy are maybe touch and go for that first one but obviously we'll give ourselves the best chance.

"[It's] going well. Had successful surgery in Sydney and the surgeon is really happy with how it went. I think he did Tim Paine's successful surgery, so it fills me with a lot of confidence.

"The rehab is having two weeks of time [off], then two weeks to start running and get the shoulder and back moving just to double-check they haven't frozen over. Then probably at the four-week mark I'll try and hold a ball and see how that works.

"Try and hold a cricket bat and see how it feels. At the moment [the finger] feels really good, pain-free, so that gives me a bit of confidence in four weeks' time that it will be all good.

"We meet over in Sydney for the Allan Border Medal [ceremony], then we leave the next day to go to India."

Starc also dismissed talk that he may not be able to bowl for the Mumbai Indians at the start of his first Indian Premier League campaign.

He said: "No, that's not correct. I've heard about this for quite a while now. I don't know where it's come from. We've spoken to the selectors. I've heard that I'm 100 per cent available for both skill sets in the IPL at the start, so I'm not too sure where that's come from.

"Obviously my first priority is the Test series that's beforehand, getting myself right for the first Test."