World surfing title goes to last event

Queensland surfer Mick Fanning has been beaten in the quarter-finals of the Portugal event meaning the world title will be decided in Hawaii.

Australian Julian Wilson produced a huge alley-oop to progress to round four of the Rip Curl Pro. (AAP)

Mick Fanning missed a chance to claim his third world surfing championship on Thursday when he was beaten in the quarter finals at the Portugal Pro.

NSW surfer Kai Otton won their heat with ten points to Fanning's 9.43 in inconsistent one-metres waves.

Fanning, 32, needed to make the semis to accumulate sufficient points to take the crown before the season-ending event in Hawaii in December.

His nearest challenger, 11-time champion American Kelly Slater, was eliminated in the second round at Peniche but can still take the title with a win at the Pipeline Masters.