AFP - Australian Casey Stoner reigned at Phillip Island for a third straight year with victory over world champion Valentino Rossi in the Australian MotoGP here on Sunday.

Stoner, the 2007 world champion, dominated his home MotoGP, leading for all but one lap of the 27-lap race to claim a sweet, 1.935 seconds victory over the six-times world champion.

While Stoner leapfrogged Dani Pedrosa into third place on the world championship standings, Rossi extended his lead to 38 points over Jorge Lorenzo after his Spanish Yamaha teammate crashed out on the first bend and finished pointless.

Rossi could wrap up this year's world title in the second-last MotoGP of the season in Malaysia next weekend with only a maximum of 50 championship points now on offer.

Stoner, who celebrated his 24th birthday on Friday, is finishing the season on a high after sitting out three races with illness before rejoining the championship in Portugal and finishing runner-up at Estoril a fortnight ago.

He was just too quick for Rossi in his home MotoGP after qualifying on the pole and burnt off third place-getter Pedrosa by 22 seconds.

"I think without taking that time off I wouldn't be anywhere near the podium today, things would have been too difficult for me physically, and definitely I wouldn't have been able to last the race," Stoner said.

"It's just been fantastic to come back and get a second in Portugal and have the pace here to win. I can't ask for more.

"To win three from three (Australian) MotoGPs is a very nice way to end the year for me."

Several times Rossi closed the gap but on each occasion Stoner managed to pull clear and was drawing away over the closing laps to register his 19th career MotoGP triumph.

Stoner completed the 120-kilometre (74.5-mile) race in a time of 40 minutes 56.651 seconds.

Rossi, 30, has now finished on the podium from all 10 starts he has had at Phillip Island in the premier-class, including five victories.

"At one part of the race it was possible to attack," Rossi said. "But at the end it was too risky. These 20 points are very important for my championship.

"I think it was a high-level race which I enjoyed a lot following Casey, I think it was one of our best races together."

Although Rossi conceded Stoner was too fast on the day he is now in an almost impregnable position in the world championship after Lorenzo blundered at the first bend.

Lorenzo, who went into this weekend's MotoGP just 18 points adrift of Rossi, ran up the back of Stoner's American teammate Nicky Hayden's Ducati and careered into the gravel trap and out of the race.

Having struggled through the practice sessions and qualifying with rear-grip issues and illness, Lorenzo was unable to continue, but Hayden climbed back on his bike to finish 15th.

Lorenzo left the circuit medical centre with a bandaged nose and hand.

The second-last MotoGP of the season will be held in Sepang, Malaysia, next weekend followed by Valencia on November 8.