An unbeaten 102 from Steven Smith guided Australia to a three-wicket victory over England in their ODI Tri-Series clash following a tense finish in Hobart.

Ian Bell starred for England in their opening innings as he top-scored with 141 off 125 balls, while Joe Root and Moeen Ali also contributed with 69 and 46 runs respectively.

England closed on 303-8 after 50 overs, and they struggled to find an early breakthrough in Australia's reply as Aaron Finch and Shaun Marsh developed a decent partnership.

The duo reached 76 runs in 11.4 overs, but their partnership was broken when Finch (32) was bowled out by Ali, and Marsh (45) followed 16 runs later off Steven Finn's delivery.

The 25-year-old bowler nabbed his second wicket in three balls by getting Cameron White out for a duck, but Smith and Glenn Maxwell regained composure for Australia at the crease.

It took England a further 10 overs before they snatched their fourth wicket when Maxwell was caught by Root off Ali's delivery.

England struggled to keep the momentum as their opponents surpassed 200 runs, but Chris Woakes managed to get on the board after seven overs by dismissing James Faulkner for 35.

Australia needed 65 from nine overs, and Smith was the man to lead the way as he totted up the runs by reaching an ODI century off 93 balls.

Woakes claimed the wicket of Brad Haddin, just eight runs shy of the batsman's half-century, and with the Aussies needing two runs from four balls, Woakes struck again by dismissing Moises Henriques, who was run out.

However, Smith and Mitchell Starc got the single run they needed to get over the line with one ball to spare.

Australia's third victory in the competition has placed them into the final, which will be held in Perth on February 1.