Michael Chang, Andre Agassi, Rick Leach and Jim Pugh were named to the U.S. team that will play Australia in the Davis Cup finals, and red clay was chosen as the surface for the competition.

Davis Cup Captain Tom Gorman picked the same foursome that defeated Austria, 3-2, in last month's semifinals. The finals will be played Nov. 30-Dec. 2 in St. Petersburg, Fla. . . .

The heavy suspension and fine levied against Thomas Muster by the Association of Tennis Professionals for the Austrian's violation of its Code of Conduct were reduced in a ruling by an independent panel.

Muster, who had been hit with a $25,000 fine and 10-week suspension in August, had his punishment reduced to a three-week suspension, to begin Oct. 22, and $15,000 fine.

Muster was penalized after following through on his stated intention to withdraw because of injury after playing one game of his first match in a Prague tournament. . . .

Stefan Edberg, Boris Becker and Ivan Lendl advanced to the quarterfinals in the Seiko Super tournament in Tokyo. Top-seeded Edberg beat Darren Cahill, 6-4, 6-2; No. 2 Becker defeated Todd Witsken, 6-2, 6-3; and No. 3 Lendl downed Wally Masur, 6-4, 3-6, 6-3. In another third-round match, No. 10 Andrei Cherkasov defeated 1987 Wimbledon champion Pat Cash, 7-6 (10-8), 6-3. . . .

Top-seeded Steffi Graf downed Dinky Van Rensburg, 6-1, 6-4, and No. 2 Gabriela Sabatini defeated Claudia Kohde-Kilsch, 6-4, 7-5, to reach the quarterfinals of the European Indoors in Zurich. Graf next meets No. 7 Nathalie Tauziat, a 6-4, 6-2 winner over Nathalie Guerree. Sabatini faces No. 5 Helena Sukova, who beat Emanuela Zardo, 6-4, 7-5. . . .

Martin Sinner upset top-seeded Goran Ivanisevic, 7-6 (7-5), 6-4, to gain the quarterfinals of the Berlin Open.