Madrid, Spain -- (Sports Network) - World No. 1 superstar Roger Federer and U.S. Open runner-up Novak Djokovic booked spots in the semifinals, while French Open champion Rafael Nadal lost to David Nalbandian in Friday's quarterfinal action at the $2.95 million Madrid Masters.

The 2006 Madrid titlist Federer held off Spanish crowd favorite Feliciano Lopez 7-6 (7-4), 6-4 in 1 hour, 36 minutes. Federer recorded the only service break of the match to account for the difference. The wild card Lopez was unable to position himself for even one break-point chance in the tight bout, while Federer settled for the one break in 11 chances.

Federer has now won 17 straight and 27 of his last 28 matches, including some Davis Cup activity. The super Swiss is an awesome 57-6 for the year.

The reigning U.S. Open, Wimbledon and Australian Open champion and French Open runner-up Federer captured this Madrid event a year ago by beating Chilean slugger Fernando Gonzalez in the finale.

Federer will meet German Nicolas Kiefer in Saturday's semis, as Kiefer cut down a fifth-seeded Gonzalez 7-6 (7-5), 6-2 to prevent a Federer-Gonzalez rematch here. "Gonzo" was this year's Aussie Open runner-up to Federer.

The third-seeded Djokovic handled Croat Mario Ancic 7-6 (7-2), 6-2 on the indoor hardcourt at Madrid Arena.

Djokovic has now won his last 10 matches, including his title run in Vienna last week. The surging Serb has won 21 of his last 23 bouts overall.

The 20-year-old Djokovic, who already owns a pair of Masters Series shields this season, knew he had a possible semifinal showdown with Nadal looming, but the second-seeded Spaniard failed to hold up his end of the bargain, as the Wimbledon runner-up and reigning three-time Roland Garros titlist Nadal succumbed to the Argentine Nalbandian 6-1, 6-2 in 1 hour, 11 minutes. Nalbandian piled up five service breaks against Nadal, who failed to enjoy even one break-point chance in the decisive setback.

Coming off a five-week layoff, Nadal was playing his first tennis since the U.S. Open, where he was slowed by knee and arm injuries. He recorded only five winners and tallied 29 unforced errors against Nalbandian on Day 5 here.

Nadal captured the Madrid Masters two years ago.

The 2004 Madrid runner-up Nalbandian and Djokovic will square off here in Saturday's other semi.