Mercedes driver Nico Rosberg has won the Austrian Grand Prix for the second year running after a dominant performance at the Red Bull Ring in Spielberg.

Rosberg led pole-sitter Lewis Hamilton home in a time of 1:30:16:930 to cut the advantage of his teammate at the top of the Drivers' Championship to just 10 points.

After a superb start, Rosberg passed Hamilton on the inside into the first corner, before a big crash involving Kimi Raikkonen and Fernando Alonso on the first lap changed the dynamic of the race.

The incident occurred on the exit of turn two as the two cars touched leaving the McLaren of Alonso on top of Raikkonen's Ferrari in the barriers, and both out of the race, but uninjured.

Jenson Button took advantage of the safety to car to switch to a one-stop strategy that could have seen him move up the field, but the British driver was forced to retire with a mechanical problem just a few laps later.

At the front of the race, Rosberg put in a fastest lap on lap 20, a half second quicker than his teammate, as he extended his advantage to four seconds.

Sebastian Vettel, running in third, seemingly had his challenge for a podium place all but ended with a slow pit stop on lap 37, though by this stage he was firmly out of contention for the race win as Rosberg pulled away.

Hamilton was then given a five-second penalty for crossing the line at the pit exit, allowing Rosberg an even greater margin for error.

However, Rosberg had no need for such a safety nets as he controlled the race with a well-managed drive to take the chequered flag ahead of Hamilton.

Felipe Massa came under late pressure from a resurgent Vettel for the final podium place, but the Williams driver held on to take third position, his first podium finish of the season.

Results in full:

1. Nico Rosberg (Mercedes)
2. Lewis Hamilton (Mercedes)
3. Felipe Massa (Williams)
4. Sebastian Vettel (Ferrari)
5. Valtteri Bottas (Williams)
6. Nico Hulkenberg (Force India)
7. Pastor Maldonado (Lotus)
8. Max Verstappen (Toro Rosso)
9. Sergio Perez (Force India)
10. Daniel Ricciardo (Red Bull)
11. Felipe Nasr (Sauber)
12. Daniil Kvyat (Red Bull)
13. Marcus Ericsson (Sauber)
14. Roberto Merhi (Manor)

Retired: Fernando Alonso, Kimi Raikkonen, Will Stevens, Jenson Button, Carlos Sainz, Romain Grosjean