This is Roger second victory against Nadal on clay, with the other coming at the Hamburg final two years ago.
The win also ended Federer’s five-match losing streak to Nadal, a stretch that included losses in the finals at Roland Garros, Wimbledon and Australia.
Federer called his first win over Nadal since the 2007 Masters Cup “very satisfying".
Federer and Nadal were chatty and joked after receiving their trophies in a scene that contrasted with the one in Melbourne when Federer was in tears after losing to Nadal in the Australian Open final.
Earlier, WTA world no.1 Dinara Safina won her second straight title on clay by beating Danish teenager Caroline Wozniacki 6-2, 6-4 in the women’s final.
“Since I became no. 1 I’m playing better and better,” the 23-year-old said.Wozniacki will become the first Dane to crack the top-10 in next week’s rankings after reaching her third final of the season.
Safina is 14-1 on clay this season and will go into Roland Garros with the hope to earn her first Grand Slam.
In the men's doubles final, Nenad Zimonjic and Daniel Nestor clinched their fifth ATP World Tour title of the season with a 6-4, 6-4 victory over Simon Aspelin and Wesley Moodie.
The women's doubles final was won by Cara Black and Liezel Huber who beat Kveta Peschke and Lisa Raymond 4-6, 6-3, 10-6.
Here are more photos at the Madrid finals.
I would like to file an official complaint against Madrid Open because of the lack of hot ball girls compare to previous years.
(Via AP; Images by Predo Armestre/Jasper Juinen/Clive Brunskill/Getty Images)