The victory for the 36-year old is the fourth against Nadal this season, and he made it happen in just 72 minutes, to cut his deficit against Nadal to 23-15 in their head to head.
It is Federer’s 94th career title, and the World no. 2 remains the only man that can deny Nadal the number one ranking at the end of the year.
After the victory, Federer remarked that the ATP Finals scheduled to hold in London’s 02 Arena in November is his main focus.
“I’ll go home and we will work out where I play next – Basel, Paris, one of those or none, before I go to London, which is my priority,” said Federer.
He added: “I think I played a great match today with hardly any bad or poor mistakes or decision making. “It was very clear to me how I had to play and I was able to do it for the hour and 12 minutes that I was out here.
“World number one? I don’t think will happen but if I play like this maybe I’ll get close, who knows?”