Hong Kong's Fu won his only ranking crown at the 2007 Grand Prix and will have the chance to double his tally when he meets Neil Robertson or Mark Selby over 17 frames in Bendigo on Sunday.
Fu built a 4-1 lead with top breaks of 57 and 66. Milkins, bidding to reach his first ranking final, fought back to 4-4 to leave the match in the balance. But Fu regained the lead with a run of 60 and sealed victory in a tense tenth frame by potting the last pink and black.
"It wasn't a great match, the balls ran awkwardly," admitted 35-year-old Fu after reaching his fifth ranking final and second of 2013 having lost to Ali Carter at the German Masters. "I will have to play a lot better in the final than I did today. I'll be playing the world number one or the world number two so I'll have to be 100 per cent on my game to win. But it's an honour to be in the final and I'm looking forward to it."
Milkins said: "If I had played average I probably would have won. It was my poor game against Marco's poor game and his was better than mine. I've been in a few semis now but it would be nice to get to a final."
