Ko tied for third heading into final day

Lydia Ko is in a share of third, four shots from the lead, after a one-under 70 in the third round of the LPGA tournament in Kuala Lumpur.

World No.3 Kiwi Lydia Ko has shot a flawless 64 to climb within two shots of the lead in Malaysia. (AAP)

New Zealander Lydia Ko remains in contention ahead of the final day of the LPGA event in Malaysia after a one-under 70 that has her in a tie for third.

Her score put her 10-under after 54 holes of the $US2 million ($NZ2.5 million) Sime Darby tournament in Kuala Lumpur, four shots behind leader Pornanong Phatlum of Thailand.

Phatlum fired a six-under 65 to hold a three-stroke advantage over second-placed Japanese Ayako Uehara.

Ko picked up two birdies on her outward nine, but then double-bogeyed the par-five 12th before finishing with a birdie on the 18th.

The 17-year-old world No.3 already has two victories in her debut season as a professional.

She will take over as world No.1 from Stacy Lewis if she wins on Sunday and the American finishes outside the top 12.

Lewis carded a one-over 72 to be five-under and in a share of 20th.