A resurgent New Zealand Knights claimed the biggest upset in A-League history after toppling reigning champion Sydney FC 1-0 at Aussie Stadium.

The Knights scored back-to-back wins for the first time - and dealt Sydney's title defence a massive blow - after Che Bunce's 16th minute goal secured the competition cellar dwellers the biggest scalp of their short existence.

The shock result leaves the race for second place wide open with Sydney's loss - its first in nine games - compounded by a three point penalty for breaching the salary cap.

With two rounds remaining, Sydney sits just one point ahead of third-placed Adelaide United (27 points), with Newcastle (26) and Queensland (25) now all within striking distance of the prized No.2 spot.

Knights goalkeeper Mark Paston was superb for the visitors, who defended grimly under a mountain of pressure from a dominant Sydney which twice struck the bar but too often fell victim to shooting from long range.

Sydney was expected to make short work of the hapless Knights - a team which hadn't scored in its three previous trips to Aussie Stadium and were rank $11.50 outsiders in a two-horse race.

The Blues were coming off an impressive 2-0 win at Newcastle, had not conceded a goal in a record five games, and would have virtually sealed second spot with victory against the bottom club.

New Zealand for two years had been roundly written off as A-League easy beats.

But with nothing to lose - and the entire team playing for contracts next season after the club's license was reclaimed by Football Federation Australia last month - the Knights confirmed a new reputation as competition giant killers in early 2007.

Coming off a 3-1 hammering of Queensland, the Knights - playing their third game under New Zealand national coach Ricki Herbert - silenced the 16,040-strong crowd in the 16th minute when Bunce gave the visitors the most unexpected of leads.

Having gone 547 minutes without conceding a goal, Sydney let down its guard defending a corner with Bunce battling his way in front of defender Jacob Timpano before expertly volleying through a corridor of Blues players.

Sydney wasted little time trying to find a response.

David Carney and Alex Brosque both had on-target strikes well saved by Paston.

Mark Milligan should have equalised in the 42nd but his free header in the six-yard box was poorly directed straight at the 'keeper.

Sensing a boilover, Sydney coach Terry Butcher introduced striker Sasho Petrovski in a more attacking line-up to start the second half.

Carney hit the post in the 51st with a long-range strike before Knights' Chinese import Leilei Gao cleared off his own line in the 74th.

Petrovski then summed up Sydney's horror night in the 86th when his short-range shot beat Paston only for the ball to rebound off the right post and into the waiting arms of the goalkeeper.

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