Andy Murray sets out on Sunday to end a record run of Australian Open final defeats as his great rival Novak Djokovic vies to become the tournament's greatest champion of all-time.

World number one Murray is looking to avoid becoming the first man in the post-1968 Open era to lose six Grand Slam finals at the same major.

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His coach Ivan Lendl lost five finals at the US Open before he broke through in New York in 1985.

Murray, who opens his campaign with a match against Ukraine's Illya Marchenko on Rod Laver Arena, says he's in a better position this time to finally break through for his maiden Australian Open.

"I obviously feel pretty confident after the way the last season finished," Murray said.

"I do love it here. I love the conditions. I have played really well here over the years, and I just haven't managed to get over the final hurdle.

"But I think I'm in a decent position to do it. I think I have a chance to win here."

Murray is coming off a magnificent 2016 which included a second Wimbledon crown, a successful Olympic title defence and knocking Djokovic off the top spot to become world number one for the first time.

Murray is drawn to meet Japanese fifth seed Nishikori or Swiss legend Roger Federer in the quarters and 2014 winner Wawrinka in the semis.

He has Lendl back in his team and is conscious he has to keep improving to keep his rivals at bay to hold on to the world's top ranking.

"The reality is, in sport, that things keep moving on, the game will get better. I'll obviously get older, the young guys will continue to improve, and also Novak and Roger (Federer) and Stan (Wawrinka) and Rafa (Nadal) and all the guys at the top are still going to be wanting to get there," he said.

"So that's why having someone like Ivan on my team who has been in that position before and knows what that's like has been important.

"I need to continue to improve. I need to keep working hard."

Murray knows that Djokovic will be gunning for him in the year's first Grand Slam where he has a fantastic record of six finals and six victories going back to 2008.