Cleveland's David Fry smashed the game-winning home run in the 10th inning on Thursday to give the Guardians a dramatic 7-5 victory over the New York Yankees on Thursday in the Major League Baseball playoffs.

The Guardians, one out from defeat, made a stunning fightback to pull within 2-1 of the Yankees in the in the best-of-seven American League Championship Series, which continues Friday in Cleveland.

"When everybody thinks we can't do it, we think we can," Fry said. "What a win. That was so good – it was fun."

The ALCS winner will play in the World Series against either the New York Mets or Los Angeles Dodgers, who meet later Thursday in game four of the National League Championship Series.

Yankees sluggers Aaron Judge and Giancarlo Stanton hit back-to-back homers in the eighth inning and New York added an insurance run in the ninth for a 5-3 lead.

But in the bottom of the ninth with the hosts down to their final out, Cleveland pinch-hitter Jhonkensy Noel smashed a two-run homer into the left-field stands, the Dominican rookie lifting the Guardians level 5-5 to force extra innings.

New York stranded two base runners in the top of the 10th, setting the stage for Cleveland's walk-off win.

Bo Naylor singled and took second base on Brayan Rocchio's sacrifice bunt before Fry smashed the game-winning homer off Yankees relief pitcher Clay Holmes over the left-field wall.

"Not many times do I know the ball has left here to left field, but I had a really good feeling," Fry said.

"Amazing. I still don't know what happened but it ended up we won," he added. "It's so awesome, it's surreal. We've got a lot more to do, though, but it was fun tonight."

The Yankees will try to recover from the near-miss for game four.

"They scratched and clawed their way back in," Yankees manager Aaron Boone said. "Sucks losing like that, but we'll be ready to roll tomorrow."

The Yankees have not reached the World Series since winning their record 27th title in 2009 while Cleveland , which last reached the World Series in 2016, has not captured the crown since 1948. (AFP)