Venus, 36, beat fellow American Coco Vandeweghe 6-7 (3-7) 6-2 6-3 to reach her first major final since 2009, while Serena, 35, saw off unseeded Croat Mirjana Lucic-Baroni 6-2 6-1 in the second semi-final.
 Saturday’s final at the Rod Laver Arena, Melbourne will be their first Grand Slam final between the pair since Wimbledon 2009 when Serena won in straight sets.
“It is unbelievable to watch Serena play tennis – the way she hits the ball and the competitor she is,” Venus Williams said after the first semi-final. “It would be a dream to see her on the opposite side of the net on Saturday.”
Speaking after her win, Serena said “I am really proud of Venus – she is a total inspiration. I am really happy for her and to be in the final together is a dream for us. “She is my toughest opponent, no-one has ever beaten me as much as Venus.
“I feel no matter what that we have both won after all we have been through. I know a Williams is going to win this tournament.” Serena is aiming for a record 23rd Grand Slam singles title.