In this study, we developed a cascade 5,5-cyclisation of internal ketene-N,O-acetals utilizing homogeneous Au(i) catalysis. This process involves an initial 5-exo-dig carbocyclisation, followed by a 5-exo-dig heterocyclisation that stereoselectively incorporates the O-atom of a water molecule into an N-tethered propargyl alkyne. This sequential reaction results in the formation of one C-C, two C-O, and two C-I bonds, ultimately leading to the synthesis of spiro-alpha-iodo-gamma-lactone structures featuring oxazole rings in good yields.