No.7 seed Angelique Kerber has stunned world No.1 and defending champion Serena Williams to win the 2016 Australian Open.

Kerber won the match in almost three hours, 6-4, 3-6, 6-4 to win her first Grand Slam.

It was one of the most pulsating women's finals in recent memory, with Kerber going blow for blow with Williams and matching her power and aggression throughout the match.

Kerber started the match brilliantly, breaking the Williams serve early in the first set, holding on to take the set 6-4.

Williams, displaying the characteristics of a true champion, fought her way back into the match, taking the second set 6-3, before a thrilling third set had the crowd on the edge of their seats.

Kerber broke Williams early in the set to take a 2-0 lead, before Williams broke back to square the ledger.

But Kerber kept fighting, breaking Willaims again and racing to a 5-2 lead. Once again though, the world No.1 kept fighting, breaking Kerber's serve to make it 5-4.

But the German held her nerve, breaking the Williams serve yet again to claim the title in a simply thrilling final.

Kerber's defence was outstanding, as she scrambled for every point as Williams tried to run her ragged.

However, the world No.1 also made a plethora of uncharacteristic mistakes, serving six double faults and hitting 46 unforced errors. Kerber in comparison hit 25 winners and 13 unforced errors.

The win is just Kerber's second in seven meeting with Serena Williams and her eighth career title.

Kerber is now ranked No.2 in the world after wining her maiden Grand Slam title.

"My dream came true tonight. I'm unbelievably happy to say I am a Grand Slam champion," Kerber said, holding back tears during the post match ceremony.