Saether birdied six of her first seven holes and totaled 9-under 135 after rain postponed second-round play Friday and shortened the tournament to 54 holes.
Maria Hjorth also shot a course-record 64 in a bogey-free round and shared second with Lora Fairclough (66) to trail by one stroke. Tournament host Sorenstam, who is retiring in December, shared fourth with Johanna Head (70).
I think I played well today, Sorenstam said. I had many chances, but many putts stopped just short of the cup.
Saether, who is looking for her first win, needed just 24 putts in posting her lowest score on the Ladies European Tour.
My coach said, If youre in Annikas group during the final round, Ill drive five hours from Oslo (Norway) and watch you play, Saether said. I hope my coach will be here, although I will not play with Annika.
Thousands of fans followed Sorenstams group at the Frosaker Golf and Country Club. Sundays round will be her last as a pro in Sweden. Sorenstam, who grew up north of Stockholm, had a course-record 66 in the first round Thursday.
The support has been fantastic this week, Sorenstam said. On some holes you feel it more than others. On the 18th, they did the wave.
American Jill McGill was tied for ninth after a 71. Catriona Matthew of Scotland did not return to defend her title.
The 37-year-old Sorenstam won the tournament six times from 1997-2006 when it was the Compaq Open, HP Open and Scandinavian TPC Hosted by Annika.
Sorenstam will make her final competitive appearance in Europe on Sept. 5 in Denmark. Her last start will be at the Dubai Ladies Masters on Dec. 11.