( CNN ) -- World number one Rafael Nadal has been knocked out of the Shanghai Masters after suffering a shock 6-1 3-6 6-3 defeat to Jurgen Melzer in the third round on Thursday . Nadal 's serve was broken twice in the opening set against the Austrian , who is ranked 12th in the world and will now play Argentina 's Juan Monaco in the quarterfinals . U.S. Open champion Nadal came into the tournament on the back of a title in Japan , having been upset in the semifinals in Thailand the week before . He now has a season record of 67 wins and nine defeats ahead of the Paris Masters and ATP Tour World Finals in London . `` I felt slow on court . I had more mistakes than usual , '' the 24-year-old Spaniard told reporters on Thursday . `` I played shorter than usual . [ I was ] a little bit more tired than usual , just physically and mentally . '' Melzer has an outside chance of playing in both the singles and doubles at the season-ending event in London , which would make him the first player to do so since Spain 's Emilio Sanchez in 1990 . `` But it 's a long way there . I 'm almost 900 points off the eighth player . This is a very long way , '' the 1999 Wimbledon junior champion said . There are four places yet to be confirmed for the tournament , with Sweden 's Robin Soderling , Tomas Berdych of the Czech Republic , Spain 's David Ferrer and injured American Andy Roddick currently on course to claim the remaining berths . Third seed Roger Federer , who has already qualified for London , set up a quarterfinal clash with fifth seed Soderling after dispatching Andreas Seppi 6-3 6-4 . The Swiss maestro faced several break-points in the opening set , but his Italian opponent was unable to take advantage and the 29-year-old progressed . Soderling reached the last eight on Thursday with a 7-5 6-4 win over 11th seed Ferrer . World No . 4 Andy Murray advanced with a 6-3 6-4 victory over French qualifier Jeremy Chardy , ensuring his place in the eight-man ATP Tour World Finals in the process . Murray will play Jo-Wilfried Tsonga in the quarterfinals in Shanghai , after the French 12th seed beat Germany 's Florian Mayer 7-5 6-3 . `` It was a big match for me , because I knew I 'd qualify for London if I won , the 23-year-old Murray told his official website . `` I thought it was very good . I served well when I needed to , when I was down break points at the start of the match . My second serve I varied a lot , because he was trying to run round and hit his forehand . '' Second seed Novak Djokovic , who won the China Open in Beijing last week , is also into the last eight in Shanghai after a 6-1 6-1 triumph over France 's Richard Gasquet . The world number two never looked threatened in the match , breaking Gasquet 's serve on five occasions and hitting 25 winners . The Serbian will next face Guillermo Garcia-Lopez , Nadal 's conqueror in Bangkok before winning the title . The in-form Spaniard dented world No . 7 Berdych 's end-of-season hopes with a 7-6 ( 7-4 ) 6-3 win over the Wimbledon runner-up , but has lost all three previous encounters with Djokovic .
Rafael Nadal is beaten in the third round of the Shanghai Masters by Jurgen Melzer . Spanish world No . 1 suffers his ninth defeat of 2010 season following 67 wins . Third seed Roger Federer and No . 2 Novak Djokovic both secure wins in China . TL;DR