Djokovic and Nishikori were at tiebreak, 6-6, after the twelfth game.
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Murray served for the match at 5-3 but was unable to convert his first match point as Nadal broke back to keep the contest alive, only for the world number five to tamely surrender his own serve in the next game.
The defeat means that the 28-year-old Scots loses his world number two ranking to Roger Federer on Monday, when the new ranking releases.
Djokovic has won 11 of the last 12 matches against Murray since 2014.
It was Djokovic’s second title in Madrid, and fifth of the year this season.
Djokovic also collected his 64th career title, equaling tennis greats Pete Sampras and Bjorn Borg.
“Andy has tremendously improved in the last couple of years on the clay courts, he has already proved that he’s definitely one of the best players in the world on this surface as well”, the Serbian told Sky Sports. “It’s an achievement that I’m very proud of”. Djokovic’s serve also worked well throughout the match.
Djokovic was made to sweat before overcoming Kei Nishikori 6-3, 7-6 in 1 hour 59 minutes on Saturday.
“I played more aggressive, I increased the intensity and rhythm of the game and had more opportunities than him in the second”. “At the end he came up with some big serves and got himself some free points and did well”. He had lost four of the last five matches against Nadal. I can not think of past year. “We make a great team”, Serena said Sunday.
However, the Serb geared up for this month’s French Open – the only grand slam title he has not claimed – with a 6-2 3-6 6-3 success.
Australian Open champion Kerber won the Stuttgart title on clay this season but faces a tricky start in Rome against either Jelena Jankovic or Eugenie Bouchard.
Halep stormed through the first set in half an hour and needed just one break in the first game of the second to win her first tournament since Indian Wells past year.
This was only his second win over Nadal on clay, both on this court, having stunned Nadal in last year’s Madrid final.
It is always hard to maintain such a level against Nadal, who found a way to stick close to Murray despite being stifled, and broke back in each set to rouse the Caja Magica. He defeated Nadal in the semifinals on Saturday.
The reigning Madrid Open champion fired off eight aces against Nadal, as well as saving 11 out of 13 break points. “I think he’s moving better and sliding better on the court”.
“I spoke to a number of coaches about it, coaches that work with younger players that develop technique”, said Murray.
“The ball was a little bit heavier”, said Nadal.
“Obviously when you play the best players, they are going to create chances”.
It was a double fault that sealed the game as Murray’s decision to step up inside his baseline prompted Djokovic to push his second serve long.
“He played unbelievable at the start, sometimes that can happen”, said Murray.
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Novak Djokovic (left) and Andy Murray (right) receive their trophies after the final of the Madrid Masters on May 8, 2016.
