Watney knocks out Woods at WGC Match Play in Arizona February 23, 2012 -- Updated 2306 GMT (0706 HKT) Nick Watney plays an iron-shot during his victory over Tiger Wood at the WGC Match Play Championship. Nick Watney beats Tiger Woods at WGC World Matchplay tournament Lee Westwood sees off Robert Karlsson 3&2 at Dove Mountain Rory McIlroy and Westwood can take over as World No.1 with overall victory Dustin Johnson thrashes Francesco Molinari 7&5 (CNN) -- Nick Watney sent Tiger Woods packing in the second round of the WGC Match Play Championship in Arizona Thursday. Woods, who had to battle in his first round win over Gonzalo Fernandez-Castano, again took the match against his fellow American to the final hole. Trailing one down, the 14-time major champion hit a superb approach to within 10 feet of the hole. Needing the putt to take the match to the 19th, Woods pushed it wide to hand his opponent victory. 'I've blocked my putts all day and I blocked that one," Woods told Sky Sports after his defeat. He is still seeking his first win in a PGA Tour event since 2009, but has shown signs of a return to his best form since the start of the year. Watney will next face England's Lee Westwood, who beat Robert Karlsson of Sweden 3&2 in their second round clash. The American has knocked him out for the past two years Arizona and will now get a third chance. But Westwood can take over from Luke Donald, beaten by Ernie Els in the first round, as World No.1 with victory come Sunday. Third-ranked Westwood won four of the first six holes but had to hold off a late rally from his opponent before booking a last 16 place. World No.2 Rory McIlroy of Northern Ireland also has his eyes on the top spot and progressed comfortably enough with a 4&2 win over Anders Hansen of Denmark. Scottish pair Paul Lawrie and Martin Laird will play each other in the last 16 after more excellent play. Former British Open champion Lawrie followed up his first-round victory over England's Justin Rose by edging out 20-year-old Japanese star Ryo Ishikawa on the final green. Laird carded eight birdies against 18-year-old Italian Matteo Manassero on his way to a 2&1 victory in a superb match. American Dustin Johnson had to battle back from three down to beat Ryder Cup teammate Jim Furyk in the first round, but enjoyed a 7&5 over Italian Francesco Molinari for the biggest win of the week so far. Another home hope, Steve Stricker, winner of the tournament in Australia in 2001, sank a 20-foot birdie putt on the last to see off Louis Oosthuizen of South Africa. Els, having routed Donald 5&4, lost by the same score to Swede Peter Hanson and is facing an uphill battle to qualify for the Masters in April.