David Haye believes Ricky Hatton should hold his head high despite his devastating defeat to Manny Pacquiao - and reckons his British boxing counterpart still has enough left in his locker for one last fight.

Hatton suffered a brutal defeat at the hands of the Filipino in Las Vegas on May 2 to condemn him to only the second defeat of his 12-year professional career.

Pacquiao floored his 30-year-old opponent twice in the first round at the MGM Grand Garden Arena in Las Vegas before finishing him off in the second with a huge left.

Hatton has so far remained coy over his future despite reports that he is set to retire from a career that has brought him world title success at welterweight and light-welterweight level.

The Manchester fighter revealed on Tuesday that he was embarrassed by the manner of his defeat, but Haye believes Hatton has nothing to be ashamed of and should hold his head high.

"I don't know what I'd do if I was him," Haye told PA Sport at his training camp in northern Cyprus.

"If he does choose to retire then great for him, he's had a great career, he's lost to the very best.

"He beat Kostya Tszyu, who was regarded by many as the pound-for-pound number one and he only lost to Manny Pacquiao and Floyd Mayweather - two freaks - so he's been very unlucky to have fought in the same era as those guys. They will go down as greats in the sport."

Haye's trainer, Adam Booth, echoed the 28-year-old's sentiments.

"The disappointment must be crippling but Ricky has achieved everything there is to achieve in the sport," he said.

"Ricky Hatton has been a world champion, he's got a phenomenal record and has made a lot of money.

"He has a lot to be proud of and British boxing owes him a lot because of the entertainment he has given us and what he has done so whatever he decides people should not only support it, but applaud him for what he has achieved."

London fighter Haye, who is preparing his fight against IBF, WBO and IBO heavyweight champion Wladimir Klitschko next month, admitted he was shocked at the devastating nature of Hatton's defeat.

He does believe, however, the Mancunian can fight on despite worries that a return to the ring would seriously damage his health.

"I'm sure he has got a lot left so whatever he decides to do, it'll be the right decision one way or another," the Hayemaker said.

"There was no wear and tear in that fight, it wasn't like he had a real hard fight where he took a lot of abuse and punishment so if he wants to fight then I'm sure he can.

"I watched the fight live and I was deeply distressed when he lost. I always knew it was going to be a tough one for him," he added.

"Ricky's a pal of mine so it was really gutting seeing him lose in that way. I thought if he was going to lose maybe it would be a split decision or it would be on points, but he got beat pretty bad and I just hope now that he makes the right decision about his future now."