The world's top two women tennis players will meet in the final of the Sydney International today vying for the chance to score a psychological blow before the first grand slam of the season.

Top seed Lindsay Davenport proved too powerful and too accurate for a tired Steffi Graf in their semi-final clash, triumphing 6-2 7-5, while Martina Hingis was made to dig deep as she toppled Austrian Barbara Schett 6-3 3-6 7-6 (7-5).

Hingis and Davenport swapped places at the top of the WTA rankings last year and the 18-year-old Swiss player is desperate to regain her crown, which is a realistic possibility if she wins in Sydney and then at the Australian Open in Melbourne next week.

Davenport, who has played Hingis 13 times, losing six, swept through her first set against Graf, forcing backhand errors from the German favourite, who seemed stiff but free from a stomach upset that left her visibly unwell in her quarter-final victory over Venus Williams.

But the former number one, whom Davenport rates a possible winner next week, again showed her fighting spirit, saving three match points before succumbing to the 22-year-old.

Davenport said she will try to move Hingis around the court and attack her second serve in today's final.

"Martina is playing very well and it'll be difficult to win," she said.

"She'll be keen to win the first title of the year but I'll just be aggressive and do what I can."

She said she was more consistent than last year "but I don't go for as many stupid shots anymore and I try to get the ball back deeper.

"I'm smarter and can handle the big situations better."

Hingis survived a hard-fought third set tie-break against lowly ranked Schett under the blazing Sydney sun to secure her berth in the final.

The Swiss teenager took the first set 6-3 but strong forehand returns gave Barbara Schet the edge in the second, with Hingis losing it 3-6.

In a seesawing third set, Hingis broke to go 2-0 up, but the Austrian, who reached the fourth round of the Australian Open last year, fought back to 2-2.

The set went to serve until the 11th game when Schett made the break with a powerful across court forehand winner. But in a match dominated by long rallies, Hingis produced some classic tennis, including a miraculous backhand passing shot at full stretch, to force a tie break.

She broke to lead 2-1 but the Austrian immediately levelled and moved 5-3 ahead before unforced errors gave the game to Hingis 75.

Hingis, who appeared sluggish, complained that the match started too early before many spectators had arrived or television coverage started.

"It was very early in the morning and after the match I asked why we had to play that early," she said. "I probably should have woken up a little bit earlier. I'm not much of an early bird."

In the men's semi-finals in-form American Todd Martin is lurking as a genuine Australian Open contender after thrashing the usually durable Austrian Thomas Muster. The 28-year-old served up notice to the top seeds that he means business at Melbourne Park with a resounding 6-2 6-1 victory.

Martin, a Stockholm Open winner two months ago, is hitting form at the right time and has a real chance of bettering his 1994 performance in Melbourne when he lost in the final to Pete Sampras in straight sets.

"I do feel that today was the best I've hit the ball in a long time," said the 15th seed, who won in Sydney in 1996.

"I'm thrilled with the way things have gone this week. I'm glad to be able to get this much match practice and it means I can prepare myself that much better for next week."

He will play Alex Corretja of Spain in the final.

Three times Wimbledon champion Boris Becker, having requested a wild card, is the latest entry for the Guardian Direct Cup at Battersea Park.

Becker, still only 31, has retired from competing in Grand Slam events, but last year played in 11 ATP Tour events and included both Tim Henman and Greg Rusedski among his victims.

Becker is still ranked 68 in the world.