MELBOURNE, Dec 28 AAP - Australia dismissed England for 270 on day three of the fourth Ashes Test at the MCG, enforcing the follow-on.

Resuming on 3-97 in reply to Australia's 6(dec)-551, England slumped to be in grave danger of losing a fourth straight Test this Ashes series.

Allrounder Craig White fought a lone battle, making 85 not out as Australian fast bowlers Glenn McGrath (1-41), Jason Gillespie (4-25) and Brett Lee (2-70) and leg spinner Stuart MacGill (2-108) got among the wickets.

Gillespie was the pick of the bunch.

Australia captain Steve Waugh also chipped in with a wicket, taking 1-13 from four overs.

England's day started badly when it lost 3-7 inside the first hour as nightwatchman Richard Dawson (six), captain Nasser Hussain (24), and Robert Key (nought) came and went quickly.

Australia held a first innings lead of 281 runs.