The former world number one, seeded 14, proved too strong for Czech Barbora Strycova on Rod Laver Arena, storming through 6-2, 6-4 to set up a last-eight clash with the seventh seed, who beat fellow German Annika Beck 6-4, 6-0.
Azarenka, who won at Melbourne Park in 2012 and 2013, has a 6-0 record over Kerber, including in the Brisbane International final this month, making her a hot favourite to keep her run for another title going.
“I’m looking forward to it. She’s such a fighter and such a nice person,” said the Belarusian, looking ahead to the test on Wednesday. “I’ll just give it my best and I’m sure she’ll do the same.”
Kerber powered past Beck to reach the quarter-finals for the first time and knows she has a formidable task ahead against a player who has won each of their encounters dating back to 2012.
“I had tough matches against her in the past. I never won against her right now, but that will be a challenge,” she said.
World number one Serena Williams and fifth seeded arch-rival Maria Sharapova play each other in a headline last eight clash on Tuesday, while fourth seed Agnieszka Radwansa faces 10th seed Carla Suarez.
The final two players in the quarters will be determined later Monday when American Madison Keys squares off against Chinese qualifier Zhang Shuai and British hope Johanna Konta plays Russia’s Ekaterina Makarova.
Azarenka, 27, has been in the zone at Melbourne Park, dropping just 11 games in four matches as she zeroes in on a return to the top after battling injuries for the past two years.