Reigning world champion Sebastien Loeb raced back into contention on the second day of the Rally New Zealand yesterday to close to within striking distance of new leader Sebastien Ogier.

After a disastrous crash on the first day, works Citroen C4 driver Loeb started yesterday 1 minute 19.8 seconds adrift of Petter Solberg, in the privately entered Citroen, ending just 5.3 seconds behind Ogier.

With the advantage of starting in seventh place, the Frenchman won all six of yesterday's gravel stages while Solberg slipped down the leaderboard as he failed to come to grips with starting first on the slippery roads.

"It has been an incredible day, flat-out from the start to the end and now we've made up the gap to first place," said Loeb.

"I'm really happy. I think I couldn't do better," the six-time world titleholder added, saying he had benefited from starting seventh.

Citroen Junior Team driver Ogier, chasing his first victory in only his second full season on the rallying circuit, won the two sealed road stages but could not prevent Loeb closing the gap on the gravel.

Jari-Matti Latvala is in third place in his Ford Focus, 33.2 seconds behind Ogier, while Spanish Citroen driver Dani Sordo is fourth.

Solberg's hopes of a first victory since 2005 suffered from having to lead the pack on New Zealand's notorious gravel roads and playing the role of sweeper.

"I knew before the start it was going to be tough but there was so much (loose) gravel on the road in the morning that there really was nothing I could do," he said.

Ogier will be the first driver away in today's final four stages which should help Loeb, who will be second on the road.