The former French Open winner has been in impressive form during her run to the final at Melbourne Park and has not dropped a set so far in the tournament.
Azarenka has beaten Li in their last four matches and is aiming to retain her Aussie Open crown.
The Chinese number one believes that she can play without pressure and is relishing the chance to compete in her third Grand Slam final.
She told reporters a press conference earlier today: "I really have to enjoy the moment, this is a new start so I am looking forward to the final.
"I just want to keep playing well, I am calm and have had good training, this time (in Australia) is a different story.
Li has reached the final in Melbourne once before in 2011 but lost on that occasion in three sets to Kim Clijsters.