Judge Simon Cowell described the London receptionist’s version of the classic tune as “the single best performance I have ever witnessed” on the show.
The two youngsters, both from Cowell’s 16 to 24 age group, will now battle it out to win the competition.
After the result was announced, Leona said: “It’s unbelievable. I can’t believe it.”
After the semi-final, bookmaker William Hill had Leona as their favourite to be the X Factor’s first female winner, with odds of 1-6 on her coming top in next Saturday’s poll.
Ray had odds of 7-2 to win. Whoever wins the X-Factor is 2-9 odds-on favourite for the Christ- mas number one single slot.
William Hill spokesman Rupert Adams said: “The only person we can compare Leona to is Kelly Clarkson, a true star.
“Leona is by far the best X Factor contestant in three years of the show and we wouldn’t dream of taking bets on her achieving at least five number ones in 2007.” Ray studied at Chiltern School of Dance and Drama on Eaton Road, West Derby, and also appeared in Brookside.
FANS of the singer can see him in Liverpool tonight, when he is due to appear at the Metquarter, at 6pm.