TENNIS: Federer set to lose four-year grip on No 1 ranking after shock defeat

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It was the Swiss star's first match since losing an epic Wimbledon final to Rafael Nadal this month and the first time he had been defeated in a tournament opener since being knocked out by Andy Murray in Dubai in March.

British No 1 Murray and Nadal both won their matches in Toronto last night, with the victory for the world No 2 from Spain of most concern to Federer.

Nadal trails his rival by 770 points in the rankings but now has the chance to close that gap.

Slipping: Federer could lose his number one ranking

Federer, who has been world No1 since February 2004, said: 'The hard court season just started so it is not the end of the world but I wish I could have started better. I like this surface, I like this tournament, I have done well in the past here so it definitely hurts.

'I have to regroup and look forward. The bigger picture is the Olympic Games and the US Open. Those are the places where I really want to win so I have to make sure I am ready for that.'

Federer won the first four games on the way to taking the opening set but Simon, riding the momentum from his championship win in Indianapolis on Sunday, refused to buckle and battliled back to see off the 12- times grand slam winner.

The world No 22 said: 'I was playing like I was in a dream. I just saw the ball and hit it as hard as possible.'

Nadal, also in his first match since Wimbledon, stretched his unbeaten run to 25 matches as he beat American qualifier Jesse Levine 6-4, 6-2. Murray, who lost at SW19 to Nadal, too enjoyed a straight-sets victory on his return to action, beating Swedish world No 64 Thomas Johansson 6-4, 6-4.