The 31-year-old world number four has yet to win the Melbourne Grand Slam in her career, having lost in the final in 2011 and 2013.
"I think I'm ready," BBC Sport quotes her as saying. "It's the same for her.
"I think we both should be ready. After six matches, everyone has more confidence to prepare for the final."
Li added that she is determined not to fall down like she did against Victoria Azarenka in the final last year.
"It means a lot because I was always doing well here," said the Chinese player. "I think it is the third time, so I've been pretty close to the trophy.
"At least I'll try to not fall down this time, because last year in the final I think I played well but was unlucky because of falling down twice. This time I'll try to enjoy it and stay healthy."
Li has a 4-0 record against Cibulkova.