The 35th-ranked Melzer, seeded seventh, saved five break points to hold serve throughout. He broke Cilic three times in the final.

"I can't find the right words to describe my emotions," said Melzer, who became only the second Austrian winner in the 35-year history of the event after Horst Skoff in 1988.

Melzer is 2-6 in finals, his other win coming at Bucharest in 2006.

"I am over the moon. I am very proud to win here," said the 28-year-old Austrian, who overcame a heel injury that caused him to pull out of the Swiss Indoors in Basel next week.

Cilic entered the tournament on a wild card after U.S. Open champion Juan Martin del Potro withdrew with a wrist injury. The Croat is 2-2 in finals this season, and an outside contender for one of two open spots at the season-ending ATP World Tour Finals in London later this month.

"I've been pleased with my game all week," Cilic said. "Jurgen started to play very well after the first couple of games so obviously he deserved to win."

Cilic looked in control early on. He won seven straight points from the start of the match, but missed three break chances in the second game.

Melzer did not score a point in Cilic's first three service games, but broke him at 3-3. The Austrian saved two break points while serving for the set at 5-4, before Cilic netted a forehand return on set point.

Melzer served flawlessly in the second set, while Cilic missed more forehands from the baseline. He saved two match points before hitting a backhand wide to end the contest.

"If I get a good start into next season, I can get into the top 20," said Melzer, who was ranked a career high 26th earlier this year.

Later Sunday, Melzer played in the doubles final with Julian Knowle, missing two match points and losing 2-6, 6-4, 11-9 to Lukasz Kubot and Oliver Marach.