Opener top-scored Sophia Dunkley for the hosts with 56 after Australia won the toss and elected to field first, with Amy Jones firing a quickfire unbeaten 40 from 21 deliveries late in the innings to help England reach 153-7.

Tahlia McGrath quickly made 40 and Beth Mooney controlled the innings with a brilliant 61 from 47 deliveries before a flurry of quick wickets gave England hope, only for Australia to chase down their victory target with the penultimate ball.

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Australia earn two points for the victory and move 6-0 up in the multi-format series, having already won the one-off Test, meaning England will now need to win both remaining T20 matches and all three ODI matches to avoid another Ashes defeat.

"We are getting closer and I am really proud of how we performed," Knight said. "We showed a lot of fightback in the first innings, but it just wasn't quite enough. I thought the crowd was amazing, they got right behind us.

"We want to be aggressive but we also want to be smart. Our way in T20 cricket is, if we can, be as aggressive as we can. I think the fact we came out on put on a good show, we should be proud of that."

How Australia edged T20 thriller

Danni Wyatt was given a lucky escape when Darcie Brown's delivery hit the stumps but the bails somehow stayed on, only for Megan Schutt to take out her off-stump in the next over.

Brown made a direct hit off her own bowling to run out Alice Capsey for just three, with replays showing Capsey's bat over the line but not grounded, while Georgia Wareham took an impressive catch at deep mid-wicket to remove Nat Sciver-Brunt and leave England 51-3.

Dunkley brought up her half-century from 42 deliveries to lead the hosts' fightback, putting on a 55-run fourth-wicket stand with Heather Knight (29) before the England captain was caught at long-on after a slower delivery from Tahlia McGrath.

Schutt removed Dunkley for 56 and Jess Jonassen claimed debutant Danielle Gibson (1) and Sophie Ecclestone in successive deliveries, only for Jones to fire 31 from the last two overs and help the hosts reach 153.

Lauren Bell claimed the early wicket of Alyssa Healy (five) but Australia quickly accelerated, with McGrath reaching 40 from 29 balls before being brilliant stumped by Jones off Ecclestone.

Ashleigh Gardener added 31 from 23 deliveries and put on 61 for the third wicket with Mooney, leaving Australia seemingly cruising to victory in front of a record crowd of 19,527, only for Sarah Glenn to claim two wickets in two balls.

Glenn saw Gardener removed via a smart catch from Jones and then bowled Grace Harris with the next delivery, while Bell dismissed Ellyse Perry in the penultimate over to leave Australia still needing 14 from nine deliveries.

Annabel Sutherland opened with a boundary and added another with the first ball of the final over before being caught after top-edging Ecclestone, with Australia securing the victory with a ball to spare after Wareham ran a quick single.

"We pride ourselves on finding a way to win and we did there. It was a great game of cricket. I am pleased to be on the right end of result," Australia captain Healy said.

"I think the winning total here is high 160s so we bowled really well but probably let them back in it at the end. I thought we were confident, the wicket looked really good, and if we played good, smart cricket we would get the job done."

England's Amy Jones added: "With a side like Australia there's going to be lots of close games. Every game we need to win, but every game you play for England feels like you need to win anyway - it's not so different. I think we're in for five really close games. Hopefully we win the next one and it keeps going.

"The gap feels like it's closing. They've earned the right to have all those compliments and they have been formidable over the last few years.

"We've felt like underdogs the whole way through, but after the Test and this T20 the confidence is growing and it feels to us like the gap is closing. That's a really exciting feeling amongst us."

What's next?

England's must-win second T20I takes place at the Kia Oval on Wednesday (6.35pm start), with Lord's then hosting the third T20I on Saturday at the same time and both matches live on Sky Sports.

The multi-format series then switches to three one-day internationals, with fixtures at Bristol on Wednesday July 12 (1pm start), the Ageas Bowl on Sunday July 16 (11am start) and Taunton on Tuesday July 18 (1pm start).

Women's Ashes schedule (all games live on Sky Sports)

• Test match (Trent Bridge) - Thursday June 22 - Monday June 26 - Australia won by 89 runs
• First T20 international (Edgbaston) - Saturday July 1 (6.35pm start) - Australia won by 4 wickets
• Second T20 international (The Kia Oval) - Wednesday July 5 (6.35pm start)
• Third T20 international (Lord's) - Saturday July 8 (6.35pm start)
• First one-day international (Unique Stadium, Bristol) - Wednesday, July 12 (1pm start)
• Second one-day international (The Ageas Bowl) - Sunday July 16 (11am start)
• Third one-day international (Taunton) - Tuesday July 18 (1pm start)