Up-and-coming Melbourne amateur Nathan Holman will take a one-shot lead into the final round of the Victorian Open after firing an impressive round of 66 on Saturday.

The gifted 21-year-old bagged seven birdies in his third round marred only by a late bogey to move to 10-under par for the tournament at 13th Beach Golf Links in Barwon Heads.

But the blow torch will be applied to Holman as just one stroke back in a tie for second with the powerful Steve Jones is dual Australian Masters champion Bradley Hughes who shot a 67.

On a day tailor-made for scoring, overnight leader Andre Stolz bagged an early eagle on the par-five second but struggled after that to finish with a 76 and is now well out of contention in equal 29th place.

Also likely to up the ante is a group of four sharing third place at eight-under headed by Craig Parry, a three-time Australian Masters champion.

Just a month ago, the talented Holman from the Woodlands Club in Mordialloc was the co-leader of the Victorian PGA Championship at the midway point but folded on the weekend.

So he is determined to prove he can handle the pressure at this level of competition while still developing an already impressive game.

"I have been there (before), but if you don't have nerves it's probably a bad thing," said Holman, whose only blemish came at the 17th hole measuring just 113 metres.

"I've learned you need to play four rounds of golf ... there's not many rounds of golf where you can just blitz the field."

In the women's division, pacesetter Sarah Jane Smith from Queensland started out with the intention of defying all challengers to run her down.

But the well-performed Victorian favourite Stacey Keating made five birdies on the front nine to overhaul her rival and then maintained enough intensity to close out the round in 68 and take a stranglehold on a title she covets.

Keating, who has steadily climbed up the world rankings since winning two national titles during a breakout 2012 on the LET Tour in Europe, will tee off in the final round with a lead of four shots over the unheralded amateur Grace Lennon, a winner of the Heidelberg Golf Club championship as a 12-year-old.