Gary Breen's last-ditch header gave Coventry a dramatic victory that sees them grab a relegation lifeline - and drag Everton into the dogfight at the bottom.

Coventry survived early Everton dominance and the aerial threat of Duncan Ferguson to come storming back in the second half to take the lead through Mustapha Hadji.

Everton hardly deserved anything for a wretched performance, but thought they had salvaged a point when Scot Gemmill drilled home a late equaliser.

But two minutes later Breen struck with a powerful header, his first goal for almost three years, to send Coventry wild - and their animated manager Gordon Strachan crazy on the line.

Both Coventry goals had come from excellent free-kicks from former Liverpool youngster David Thompson, and how he must have enjoyed sticking the knife into his former enemies.

With Middlesbrough also producing an unexpected win, the battle for survival now is drawing clubs who thought they were safe into the fray.

Everton have now lost four of their last five, and boss Walter Smith' side were jeered off as they contemplated a harsh 2001.

Ferguson, still nothing like fit, was thrust into Everton's attack to underline the growing relegation concern on Merseyside.

It was Ferguson's first start of the season after persistent thigh problems had reduced him to just three appearances as substitute since his return from Newcastle in the summer.

Everton's start was predictable. Everything launched at 'Big Dunc', and on three minutes he reached a Gary Naysmith cross to force Chris Kirkland into what was the first of a string of saves.

On 15 minutes Danny Cadamarteri raced clear on the right and found the unmarked Ferguson in the six-yard box, his powerful header being well saved again by Kirkland. Then Ferguson's jump for Gary Naysmith throw created problems, Mark Pembridge tried a shot and Idan Tal's final effort was blocked again by Kirkland.

The long ball service to Ferguson continued with the big Scot nodding down a clearance from keeper Thomas Myhre, which Cadamarteri pushed back to his strike partner who hit a low curler that Kirkland saved to his right.

But Coventry weathered the storm and started to create chances of their own, their first came when Thompson whipped in a cross from the right that spun up into the air, for Myhre to pluck the dropping ball off Lee Carsley's head.

Steve Watson with an unmarked header and a 20-yarder from Thomas Gravesen suggested it was only a matter of time before the hosts went ahead.

But Coventry began to find space down the flanks, and Craig Bellamy wasted a glorious chance after Thompson had put Paul Telfer in on the right, the low cross finding the unmarked Welshman beyond the far post, but his shot curled wide of the far post.

Thompson was the creator again after 42 minutes, sending Bellamy in on the left this time, but Myhre made an excellent save as the £6.5million youngster tried to bend his shot into the far corner.

Coventry's more positive approach continued after the break as Everton became more aimless.

A minute into the second period, Thompson wasted another glorious chance after a near pitch-length run from Bellamy, which ended with the ball being squared across the box for the free-running Thompson to lash wide.

Everton's only real danger was coming in the air, and Coventry were learning to cope with a predictably immobile Ferguson.

Weir hit the bar with a header from Tal's left-wing corner, but Everton were losing their way.

Coventry should have gone ahead on 61 minutes when Ysrael Zuniga got away from Weir on the right, and when the centre bobbled across the box, Thompson had a left-foot chance from 10 yards but he didn't get enough power into his effort and Myhre saved.

Ferguson, who had done little apart from jump for high balls, managed to find space for a pass to Cadamarteri in the box, but the teenager couldn't keep his shot down, and he was soon to be sacrificed in a double substitution.

On 66 minutes he was replaced by Joe-Max Moore while Dave Unsworth took over from Tal as Everton sought to liven things up.

But on 70 minutes it was the ever-improving Coventry who took the lead when Thompson's long free-kick into the box found Hadji charging into the box unmarked to head past Myhre.

Everton were resorting more and more to the long ball barrage in desperation, and Kirkland saved from a low angled drive from Gemmill.

Everton thought they had salvaged something from a wretched performance when they equalised on 84 minutes when Watson headed the ball forward for Ferguson to touch wide for Gemmill to drill past Kirkland on the run.

But Coventry just wouldn't give up, and were back ahead two minutes after Everton's goal when Breen headed home from another Thompson free-kick.

Everton: Myhre, Steve Watson, Weir, Ball, Naysmith, Gravesen, Gemmill, Pembridge (Nyarko 75), Tal (Unsworth 67), Ferguson, Cadamarteri (Moore 67).

Subs Not Used: Simonsen, Cleland.

Booked: Cadamarteri, Ferguson.

Goals: Gemmill 85.

Coventry: Kirkland, Breen, Williams, Konjic (Edworthy 22), Quinn, Thompson, Telfer, Carsley, Bellamy (Chippo 84), Hadji, Zuniga (Aloisi 77).

Subs Not Used: Eustace, Hydlgaard.

Booked: Breen.

Goals: Hadji 69, Breen 87.

Att: 35,704

Ref: N Barry (Scunthorpe).