The two teams met in the final group match of the women's event in Galle, with England beating Australia by seven wickets with 11 balls remaining.
England has been undefeated throughout this tournament, posting decisive wins in its group matches and in the semi-final, played against two-time runners up New Zealand.
England beat the White Ferns by seven wickets to reach its second ICC World Twenty20 final in three years.
Australia advanced to the final after beating a spirited West Indies by 28-runs in the second semi-final.
Australia has lost only one match in the tournament, having beaten India and Pakistan in the group stages in Galle.
In the first semi-final played on Thursday, England's spin bowlers restricted the White Ferns to 93 for eight off 20 overs on a slow wicket.
Danielle Wyatt and Holly Colvin finished with two wickets each. Colvin is the leading wicket-taker for England, and is the third-highest wicket-taker of the tournament, with seven.
In addition, three out of the top five run-getters in the tournament are from England, with Edwards the leading run-scorer, Sarah Taylor third and all-rounder Laura Marsh fifth.
In Friday's second semi-final, it was again the bowlers who sealed victory. Australia's Julie Hunter took the only five-for in the women's tournament so far, taking 22 for five in her four overs. Hunter is currently the leading wicket-taker of the tournament, with nine scalps.
While no Australian batter has scored a half century in the tournament to date, three Australians are in the top 10 run-getters list of the tournament, with Meg Lanning fourth, Jess Cameron sixth and Lisa Sthalekar ninth.
"It's been a great tournament," said Fields. MORE
