ENGLAND'S hopes of progressing in the World Twenty20 suffered a major setback after a middle-order collapse condemned them to a five-run defeat against New Zealand.

Chasing New Zealand's competitive total of 164 for nine, England seemed on course to claim the victory which would have boosted their chances of reaching this weekend's semi-finals.

But after reaching 72 for one at the halfway stage of their reply, they suffered two mini-collapses at vital times and were restricted to 159 for eight and England now have to win the match against India and hope other results go in their favour to have any chance of qualifying for the semi-finals on run-rate.