In front of a raucous home crowd inside Centre Bell in Montreal, Canada dispatched Sweden 5-2 after the US narrowly defeated Russia 4-3 in the last four encounters.

The Canadians did not have it all their own way though as they were forced to recover from deficits of 1-0 and 2-1.

It was the European side who opened the scoring as captain Joel Eriksson Ek stunned the arena when he slotted past goalkeeper Connor Ingram.

But, less than two minutes later, Canada levelled the match after Mitchell Stephens converted following confusion in the goalmouth. 

Soon though, the Swedes were once again ahead after Carl Grundstrom broke away before squeezing an effort through Ingram’s pads, who was soon replaced.

Anthony Cirelli brought Canada level once again on 18 minutes when his thumping shot flew into the net.

The tide began to turn midway through the second period as Canada increased the tempo and created a number of scoring chances.

Cirelli hit the crossbar before Canada deservedly took the lead.

Julien Gauthier scored the first of his two goals to put Canada 3-2 ahead before Captain Dylan Strome made it 4-2.

Gauthier then secured his team's place in the final after he struck into an empty net with just under two minutes remaining.

Meanwhile, Troy Terry scored three nervy shootout goals to give the US their win over Russia.

It is the first American playoff victory over Russia in World Junior Championships history.

"He has great skill, great hands," US defenceman Charlie McAvoy said of Terry.

"He's got ice in his veins, and he proved that tonight."

In regulation time, Colin White scored twice for the Americans while captain Luke Kunin added the third.

Denis Guryanov scored twice for Russia and Kirill Kaprizov scored the other goal.

Ilya Samsonov dazzled to keep the score level in overtime, which was played using a four-on-four format, first denying Caleb Jones before producing a stunning save as Joey Anderson tried to slide the puck home.

In the best-of-five shootout, which had 14 shots in total, Terry's hat-trick proved decisive.

The tournament concludes tomorrow at Centre Bell in Montreal where both of the final two matches will take place.

Sweden meet Russia first in the bronze medal match before the the US and Canada compete for the gold medal later on.

The Americans, who earned bronze last year, are seeking their first World Junior gold since beating Sweden in the 2013 final while their previous titles came in 2004 and 2010.

Canada, meanwhile, will be aiming to win their second title in three years following their success on home ice in 2015.