New York's Raul Ibanez blasted a game-winning home run in the 12th inning after tying the game with a homer on Wednesday to lift the Yankees to a 3-2 win over Baltimore in a Major League Baseball playoff thriller.

The Yankees took a 2-1 lead over the Orioles in the best-of-five American League division series with game four on Thursday in New York, where game five will be played on Friday if necessary.

New York or Baltimore will face either Oakland or Detroit to decide a berth in the World Series against the National League champions.

Ibanez put himself among the Yankee legends with his epic homers, the first coming with his team trailing in the ninth innings and two outs from defeat.

The 40-year-old outfielder and designated hitter became the first Yankee batter since 2004 with two homers in a playoff game and came when the team needed them most, smashing the fourth and fifth playoff homers of his career.

"It's a great experience," Ibanez said. "We stayed after it. We did it as a team. It's about team and it's about winning."

In the 12th, Ibanez smashed the ball over the right-field wall to send the Yankees dancing out of their dugout in delight.

In National League playoff action, Pete Kozma smacked a three-run home run to help power reigning World Series champions St Louis to an 8-0 victory over Washington.

The Cardinals seized a 2-1 edge in the best-of-five NL divisional series with game four on Thursday at Washington and a fifth game, if needed, at the US capital on Friday.

The winners will face either San Francisco or Cincinnati.