Selby, the 2014 and 2016 world champion, defeated Ryan Day 5-3 in a tight last-eight encounter.
Bingham, last year's Crucible champion, had breaks of 58 and 91 as he beat Ali Carter 5-1.
Ding Junhui beat Michael Holt 5-3 and faces Stephen Maguire, 5-1 conqueror of Michael White, in the other semi-final.
Follow all results from the Shanghai Masters here.
Mark Selby will face Stuart Bingham as snooker's most recent world champions meet in Saturday's semi-finals of the Shanghai Masters.