Swiss legend Federer secured his place in yet another showdown on home soil by seeing off Jack Sock 6-3 6-4 in the second semi-final on Saturday.
Top seed Federer claimed three breaks of serve and failed to hold just one to set up an encounter with Spaniard Nadal.
Third seed Nadal marched into the final by seeing off this year's Wimbledon semi-finalist Richard Gasquet 6-4 7-6 (9-7).
Nadal was broken in the first game of the match and had a brief visit from the trainer when 3-2 down after appearing to injure his right knee.
However, after losing the next game, the Spaniard reeled off four in succession to claim the opening set.
Nadal's forehand was an increasingly potent weapon as he secured the lead with a second break of the Gasquet serve, following an enthralling game that saw both players produce stunning winners.
Gasquet responded impressively and eventually accepted a seventh break point to move 1-0 up in set two, the fifth seed coming out on top in an exchange of backhand volleys at the net.
After working hard to consolidate the break, Gasquet was relieved to see Nadal miss a makeable backhand down the line when he had the chance to pull level at 2-2.
The Frenchman was unable to serve out the set, though, Nadal earning two more break points with a dipping, cross-court pass before accepting the first with a confident volley.
And a see-saw tie-breaker eventually went the way of Nadal, who converted his second match point after Gasquet had spurned two opportunities to force a decider.
Federer took charge of the second semi-final with a break to lead 3-1 and Sock was unable to win a break point in reply when his lob drifted wide as Federer held to lead 4-1 and went on to win the set.
The 17-time grand slam champion then surged into a 5-1 lead in the second set and, although Sock made a game of it to battle back to 5-4, Federer needed just one match point to get the job done.