Vettel's best lap time of a 1:17.017s was 1.4s faster than Rubens Barrichello's old ultimate lap record from 2004 and enabled Vettel to top final practice.
Team-mate Kimi Raikkonen was second, 0.475s slower than the sister SF70-H with Mercedes driver Valtteri Bottas the only other driver to be within a second of the Ferrari's in third.
Max Verstappen was three tenths quicker than Lewis Hamilton for Red Bull, as McLaren's Stoffel Vandoorne was sixth quickest.
Nico Hulkenberg was seventh for Renault, ahead of Daniel Ricciardo, who stopped with electrical problems during the 60 minute session.
The rest of the top 10 was rounded out by Fernando Alonso and Jolyon Palmer for McLaren and Renault.
First Raikkonen and then Vettel
Verstappen was the first driver to set a representative time, a 1:19.012s which was quickly bettered by Raikkonen's time of 1:18.727.
The Finn then pumped in a 1:17.909s which was enough for him to break Barrichello's long standing record, on the super-soft tyre.
Moments later however, Vettel posted a time of 1:17.790s to pip his team-mate by 0.119s for top spot
The Mercedes duo, who reported trouble setting up their car yesterday, could not match the pace the Ferrari's were showing, with Bottas's best time being a 1:17.914, and Hamilton being 1.4s of the pace of his championship rival Vettel.
His team-mate, Verstappen, was able to put in a time good enough for fourth late on.
Vandoorne best of the rest
In the dying embers of the session, Vandoorne put in a time good enough for sixth, and usurped Hulkenberg as best of the rest in the session.
The Belgian was able to lap faster than team-mate Alonso, as both McLaren's were once again well inside the top 10.
After a tricky day yesterday, Palmer had a clean session and was 10th quickest, but still some three tenths behind Hulkenberg, who will take a five place grid penalty for a gearbox change.
Romain Grosjean complained yet again of balance and braking issues in his Haas, on his way to 15th quickest as there was drama at Williams.
Felipe Massa was taken to hospital last night, as he did not feel well, and after only posting 12 laps, did not take any further part in the session.
Williams reverse driver, Paul di Resta is on standby, and will take over the FW40 for Qualifying and the Race if need be.
Marcus Ericsson received the wooden spoon for Sauber, 0.302s slower than team-mate Pascal Wehrlein.
|4th||Max Verstappen||Red Bull||+1.177s|
|8th||Daniel Ricciardo||Red Bull||+1.697s|
|11th||Carlos Sainz Jr||Toro Rosso||+2.283s|
|12th||Esteban Ocon||Force India||+2.335s|
|13th||Danill Kvyat||Toro Rosso||+2.438s|
|14th||Sergio Perez||Force India||+2.592s|