The German defeated her fourth-seeded opponent for the loss of just two games in a one-sided contest.
The first three games of the opening set went against serve but when Kerber grabbed a 3-1 lead she then pressed her advantage by holding serve to go 4-2 ahead.
Kerber then broke again to hold a 5-2 advantage and then wrapped up the set in just 23 minutes.
The German powered her way through the second set without losing a game, her powerful forehand doing most of the damage as she wrapped up a 6-2 6-0 win in just 50 minutes.
Kerber told the tournament website: "Today from the beginning I had a very good rhythm, immediately came well into the game and had a very good feeling from the first point to the last.
"I could also implement my tactics, I was aggressive on the forehand. I must say that I feel better from game to game in Linz."
Serb Ivanovic, the number three seed, defeated Switzerland's Stefanie Voegele 6-4 6-4 in the other semi-final.
The first set went with serve but at 4-4 Ivanovic broke her unseeded opponent before serving out for a 6-4 score in 38 minutes.
The first two games of the second set went against serve but the next four service games were held until Ivanovic broke to lead 4-3.
Voegele held her next service game but at 5-4 Ivanovic held serve, taking her first match point and the set 6-4 to set up a meeting with Kerber.
Ivanovic said: "I feel very comfortable in Linz, my family is here and so all is good.
"Now I'm looking forward to tomorrow's final. This will certainly be a great final , I hope also for the support of the fans."