Min Woo Lee has gone head-to-head with Jon Rahm at the Spanish Open and ended up quite outshining the local hero at the Club de Campo Villa de Madrid.

Australia's rising star, in a three-ball with the former world No.1 was undaunted at being at the heart of the Rahm show as he flourished with a six-under par 65 in Friday's second round - three shots better than his illustrious playing partner could produce in front of his adoring galleries.

It meant the pair were both firmly in the hunt for the title at halfway at 10 under par for the tournament, just two off the lead held jointly by England's Paul Waring, who enjoyed the day's best round of 63, and Scotsman Stephen Gallacher (65).

Rahm should have joined Scot David Drysdale and South African Hennie Du Plessis (both 66s) in joint-second at 11 under, but missed a four footer for birdie at the last, much to the chagrin of his fans.

It seemed to sum up his uneven day playing alongside the 24-year-old Western Australian Lee, the younger brother of women's star Minjee Lee who combined some dazzling iron play with terrific scrambling to record seven birdies and just one bogey in his round.

Lee, who's after his third European Tour title following victories at the Vic Open and Scottish Open over the past two years, opened up by sinking a 20 footer and never looked back as he racked up four birdies in just the first seven holes.

He squandered a couple of shorter putts for further birdies and eventually failed to make a par save when he missed the green at the 12th.

Yet arrow-like tee shots at the short 11th and 17th holes left him with little more than tap-ins for birdies.

Lee also chipped in from the fringe for a birdie four at the 14th and rescued par at the last after getting lucky with a free drop to leave himself in good shape to challenge for the 297,500 Euros ($A455,000) first prize over the weekend.

Rahm's 68 featured all sorts of highs and lows, coming close to an eagle at the 14th when he just missed from 23 feet.

"I played what I could say 11 uncomfortable holes and then I played really good golf on the last seven," shrugged the man who's seeking a third Sanish rown to equal the record of his late, great countryman Seve Ballesteros.

Tied with Rahm and Lee in fifth place were first-round leaders Kiradech Aphibarnrat, of Thailand, and Dutchman Darius van Driel, while Frenchman Frenchman Matthieu Pavon joined them after a 68.

The other Australian to make the cut was Queenslander Maverick Antcliff, who shot a second straight 69 to lie on four under.

But Zach Murray (second round 68 and level par overall) and Jason Scrivener (72 and one over) failed to make the weekend.

South African Daniel van Tonder made a hole-in-one on the par-three ninth, a day after Daniel Gavins' feat at the same hole