Shanghai:  World number one Roger Federer brushed aside arch-rival Rafael Nadal on Saturday to set up a Masters Cup final with surprise package James Blake. Federer beat Nadal 6-4, 7-5 to reach his fourth consecutive Masters Cup final, before Blake downed defending champion David Nalbandian 6-4, 6-1.

Blake broke a misfiring Nalbandian twice in the first set and three times in the second to oust the Argentine, who had been on course for a rematch of last year's classic final with Federer.

Blake is the first Afro-American to reach a year-ending final since Arthur Ashe 28 years ago, and the first Masters Cup debutant to reach the last two since Sebastian Grosjean in 2001.

He has never beaten Federer in five attempts, although he did take a set off the Swiss in this year's US Open quarter-finals.

"Hopefully tomorrow I can do a little better, although he may come out and run me over," he said.

"I'll have some fun and try to do what most seem to think is impossible. I will take my best shot," he said.

Federer will be optimistic of claiming his third Masters Cup title after producing a clinical display to finish off Nadal in less than two hours.

It was Federer's second victory in a row over the Spaniard, whom he beat in the Wimbledon final, and third overall. Nadal had dominated Federer early in the season, beating him in four finals.

"It's a big test for me and I'm happy to come through," Federer said.

"These are matches I'm waiting for, to beat the best who are coming after me and I beat him in the last game (between them) of the season," he said.

The Swiss opened his first indoor match with Nadal aggressively, firing three aces in the first game and breaking immediately afterwards with a couple of booming forehands.

Nadal faced five break points before he could hold serve and was only given a chance when Federer, serving for the set, gifted him a break with a double fault, a howling missed volley and a netted forehand.

But Federer recovered straight away, breaking back for the set when Nadal ended a marathon rally by finding the net.

Nadal wobbled at 4-5 in the second, facing two match points among four deuces before holding.

He was taken to another two deuces in his next game before Federer chased down a drop shot to take the match with a superb cross-court winner.

"For me he's the best number one in history and I was playing against him on his best form," shrugged Nadal.

"I knew I would have a difficult match but I came with my best preparation and I was fighting always."

Federer won the tournament in 2003 and 2004 before losing last year's final.

He is the first player to reach four consecutive finals at a season-ending championship since Ivan Lendl, who strung together nine between 1980-1988.

Nadal, who was making his Masters Cup debut, beat him in four finals this year on the way to five titles including his second consecutive French Open crown.

But his form slumped after Wimbledon and this was his first semi-final in seven tournaments.

Federer describes 2006 as his best season yet, winning three out of four Grand Slam finals and another eight events to take his career tally to 44.

His record for the season now stands at 91-5 and he has become the first player to amass more than seven million dollars in prize money in one year.

Blake entered the tournament on the back of a breakthrough season in which he took five titles and entered the top 10 for the first time.

The eighth-ranked New Yorker was the first into the semi-finals round-robin wins against Nadal and Nikolay Davydenko, the world number two and three.