American striker Latsko pounced on 14 minutes to fire home the only goal of a high-intensity semi-final, despite awkward blustery winds at Epping Stadium on Saturday.
Melbourne Victory threw everything at their opponents in a one-sided second half, but were unable to break through and end their six-year grand final drought.
The result proved more than a dose of revenge for Sydney FC who crashed to a one-sided 3-1 defeat against the same opponent a fortnight ago, allowing Victory to earn semi-final hosting rights.
The result ended any hope of a Melbourne derby in the season decider with the Sky Blues to tackle the winner of Sunday's other semi-final between red-hot favourites Melbourne City and fourth-placed Western Sydney Wanderers.
There were barely a few hundred spectators in attendance in Melbourne's far northern suburbs after Friday's confirmation that weekend W-League semi-final matches would proceed as planned.
Annalie Longo spurned an early opportunity for the hosts, but it was Sydney who broke the deadlock as Latsko neatly converted a superb cross behind the defence from Ally Green.
The Victory racked up countless half-chances during the second period but the Sky Blues' goalkeeper Aubrey Bledsoe dealt with everything that came her way, while central defenders Ellie Brush and Alanna Kennedy shackled star Victory forward Natasha Dowie.
