Daniel Ricciardo celebrates his win in the Canadian Grand Prix at the Circuit Gilles Villeneuve in Montreal. REUTERS/Chris Wattie

Australian Daniel Ricciardo has celebrated his first Formula One victory in a Canadian Grand Prix that put Red Bull back on top of the podium and dealt Mercedes a first defeat of the season.

An afternoon of high drama at the Circuit Gilles Villeneuve ended behind the safety car after Felipe Massa's Williams smashed into the back of Force India's Sergio Perez as they entered the final lap in a fight for fourth.

Ahead of them, Ricciardo was able to cruise to the chequered flag with championship leader Nico Rosberg second for Mercedes after starting on pole position. Last year's winner Sebastian Vettel was third for Red Bull.

"I'm still a bit in shock," beamed Ricciardo from the podium, where he was interviewed by 1995 Canadian GP winner Jean Alesi. "It's an amazing feeling right now."

Rosberg still stretched his lead to 22 points after team mate Lewis Hamilton, his closest rival, retired with a rear brake problem.

The pair had fought wheel-to-wheel, their cars touching at the hairpin on lap 46, before 2008 world champion Hamilton suffered his second blank in seven races.

Rosberg, who reported a problem with the power unit half way through the race, held out until he was passed by Ricciardo with two laps to go.

"The boy has been brilliant all year," declared Red Bull boss Christian Horner. "It was an incredible drive. It's been a great team effort. We beat them (Mercedes) at the most unlikely track. We are closing the gap."

McLaren's Jenson Button, winner in Canada in 2011, benefited from the last lap chaos to take fourth followed by Nico Hulkenberg in a Force India and Ferrari's Fernando Alonso.

Starting alongside each other on the front row, pole sitter Rosberg and Hamilton - a three times winner in Canada - had looked poised for another of their private duels.

Hamilton tried to force his way past at the start but was squeezed out and lost a place to Vettel.

Rosberg was unable to capitalise on Hamilton's setback, however, with the safety car immediately deployed after the two Marussias collided and left debris scattered across the track.