Rafael Nadal has beaten Roger Federer to book his place in the Australian Open final.

The world number two lost the opening set on a tie-break but hit back to take the next three and win 6-7, 6-2, 7-6, 6-4.

Third seed Federer saved one match point on Nadal's serve but the Spaniard held his nerve to take it on the next.

It was another classic encounter two of sports greatest rivals, with 10-time Grand Slam champion Nadal extending his winning record against Federer to 18 victories in 27 meetings.

Nadal, who injured his knee prior to the tournament, added: "Two Sundays ago I really couldn't imagine being in the final. It's a dream to be here."

The Spaniard, who won the title in 2009, will play world number one Novak Djokovic in Sunday's final after the Serb edged out Britain's Andy Murray 6-3, 3-6, 6-7, 6-1, 7-5  in a nailbiting semi-final on Friday.