Shahar Peer's drive to become the first Israeli tennis player to reach the semi-finals of a grand slam singles semi-final came to a heroic end Tuesday, as a fired-up Serena Williams came from behind to score a nailbiting 3-6 6-2 8-6 victory in the Australian Open quarter-final round.

Peer came within two points of triumph before succumbing to Williams, who reached the final four at Melbourne Park for the third time. Ominously for her rivals, the American Williams has gone on to win the title each time she has made it this far.

Peer, aiming to become the first player from her country to reach, looked to be heading out at 4-1 down in the final set but she refused to crumble.

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The 19-year-old levelled at 4-4 after her fizzing forehand passing shot whizzed past a lunging Williams and rattled the American further by breaking for a 6-5 lead.

Peer served for the match in the next game but was undone by her lack of self-belief as Williams pumped herself up to stay alive.

"It was definitely a hard-fought match and I'm excited to come through despite not being at my best. I love to compete. I'm the ultimate competitor," said an excited Williams, who set up a clash with 10th seed Nicole Vaidisova.

"I feel awesome, I'm exited to be out here. I'm happy to be out here and beat yet another seed."

After an injury-wrecked 2006, world number 81 Williams was the lowest ranked player to reach the quarter-finals.

Yet the seven-times grand slam champion has lived up to her billing as a dangerous floater with Peer becoming the fourth seed to fall prey to the Williams onslaught.

The former world number one appeared to find inspiration from the notes she read during changeovers and after two hours and 34 minutes of enthralling action on a baking Rod Laver Arena, Peer surrendered by floating a backhand wide.

Williams greeted her moment of glory by jumping up and down the court before holding aloft her index finger to the crowd as if to say "I'm still number one".