Lee is congratulated after polishing off India's tail

Fast bowler Brett Lee proved too hot for India as Australia reached the final of the tri-series in Kuala Lumpur with an 18-run victory.

Lee took 5-38 as India were bowled out for 195 after being set a victory target of 214.

Dinesh Mongia made a battling 63 not out but ran out of partners when Lee bowled Munaf Patel in the 44th over.

Matthew Hayden top scored with 54 for Australia, who will now take on West Indies in Sunday's final.

"I've said before that I think Brett is the best one-day bowler in the world. He always gets wickets with the new ball," said skipper Ricky Ponting.

"It was a really good, tight tussle and Australian generally win that type of battle. It gives us a lot of confidence going forward."

But both Australia and India will have ongoing concerns about their batting ahead of next month's ICC Champions Trophy.

Ponting chose to bat first after winning the toss but they only had 36 on the board when Simon Katich chased a wide one from Ajit Agarkar and was brilliantly caught at point by Suresh Raina.

Ponting followed for four when he clipped a ball from the impressive Patel straight to square leg and they slumped to 117-6 after Hayden, who hit eight fours, and Damien Martyn (19) were both run out.

Hayden was well short when Mahendra Dhoni removed the bails

A partnership of 77 between Brad Haddin (46) and Brad Hogg (38) at least enabled them to post a respectable total but the innings came to an end when RP Singh (2-43) had Lee caught off the first ball of the 49th over.

India needed a solid start in reply but certainly didn't get it as Lee and Stuart Clark took two wickets each with the new ball.

Tendulkar was adjudged caught behind off Glenn McGrath's first delivery, only to be recalled by umpire Mark Benson after deciding he had made the wrong decision.

But he did not last long, with Mike Hussey taking a catch at point off Lee to dismiss him for four.

Captain Rahul Dravid was also among the early casualties, falling lbw for seven to Clark, who bounced back impressively after conceding 87 from seven overs against West Indies on Monday.

India were 96-5 when Raina was bowled by spinner Hogg for 26, but Mongia and Mahendra Dhoni kep them up with the required rate as they added 62.

The partnership was broken when Lee returned to have Dhoni (23) caught by Martyn, although TV replays suggested it may have been a no-ball, and the tail could not provide Mongia with the support he needed to see India home.