Honda rider Dani Pedrosa has crashed out of the Australian Motorcycle Grand Prix, leaving Spaniard Jorge Lorenzo on track to take out the world MotoGP title.

Pedrosa crashed while leading the race on lap two, sliding out of control while taking a corner.

The Spaniard returned his Honda to the pits and retired from the race.

Lorenzo, who holds a 23-point championship lead, can now ensure title victory by picking up just three points in the race.

That would mean Pedrosa could not catch him with one race remaining in Valencia next month.

Lorenzo is currently sitting second.

Australian Casey Stoner, seeking a sixth successive Australian GP win, is currently leading the 27-lap race in his farewell home MotoGP.