England will have to win their final Twenty20 fixture against New Zealand in order to clinch the three-match series following their defeat in Hamilton.
The visitors had the chance to wrap up the series following their 40-run victory in Auckland at the weekend but they collapsed during their reply to New Zealand's 193 target.
The tourists were shaken in the early overs of their innings by losing Alex Hales for five and Luke Wright for a duck courtesy of bowls from Mitchell McClenaghan.
Jos Buttler was England's top scorer with 54 but New Zealand's James Franklin became the standout player for the hosts by snatching four wickets, including the dismissal of Jade Dernbach for a duck to force England all out on 137.
Nathan McCullum snatched one wicket, while McClenaghan and Ian Butler took two wickets apiece.
