Gary Woodland leads the Hero World Challenge by one shot heading into this weekend's final round in the Bahamas. (AFP)

Gary Woodland will take a one-shot lead into the final round of the Hero World Challenge in the Bahamas as Tiger Woods remained firmly in the hunt on Friday.

US Open champion Woodland surged to the top of the leaderboard after posting a birdie-birdie finish to complete a four-under-par 68 at Albany Golf Club.

Woodland leads by one stroke on 13 under from Sweden’s Henrik Stenson, who also carded a 68 to finish the day on 12 under for the tournament.

Stenson could have taken sole possession of the lead but was undone by a bogey five on the par-four 18th.

The Swede shares second with overnight leader Patrick Reed, who endured a frustrating third round that ended with a level par 72.

Reed recovered well after bogeys on the 11th and 12th holes, picking up birdies on the 14th and 15th.

A further bogey on the 16th left him one over for the day until a closing birdie on the last salvaged his round.

Tournament host Woods, meanwhile, is lurking just two off the lead on 11 under with Justin Thomas and Spain’s Jon Rahm.

Former world number one Woods, who is also plotting the United States’ Presidents Cup campaign in Australia next week as a playing captain, fired a five-under-par 67.

Woods’ round included six birdies and one bogey, with the 15-time major winner mounting a charge on the back nine.

A 20-foot putt to save par on the 10th ignited his challenge, and Woods’ putter came to the fore on the 11th when he drained another 20-footer for a birdie.

Back-to-back birdies on 14 and 15 took him to four under before a birdie three on the last, set up with a sublime sand wedge from the fairway to eight feet, completed his 67.