Nadal (right) progressed to the final in London
Rafael Nadal beat Roger Federer for the 22nd time to reach the final of the Barclays ATP World Tour Finals at London's O2 Arena.
The Spaniard's domination of their rivalry has become almost absolute, and his first indoor win in five attempts against Federer means he has now beaten the 32-year-old on every surface.
Nadal stepped up his intensity at the end of the first set and Federer could find no answer, going down 7-5 6-3.
World number one Nadal, who will meet either Novak Djokovic or Stanislas Wawrinka in the final, is one victory away from collecting the only major trophy in the sport he has not won.
They had met four times before at this tournament, twice when it was held in Singapore and twice in London, and Nadal had managed just one set.
Indeed, the last time they played here in 2011 Federer won 6-3 6-0, but it was one of only four wins in their last 17 meetings for the Swiss.
Given their respective seasons - Federer's his worst for more than a decade while Nadal has won 10 tournaments and returned to world number one - there was no doubt who was the favourite.
Federer's forehand had been shaky early on against Juan Martin del Potro on Saturday but he looked sharp from the start and forced three break points against the Nadal serve in the sixth game.
He could not take any of them, though, and Nadal capitalised on his first chance three games later, a series of brutal forehands leaving him serving for the set.
The large and ever-present contingent of Swiss in the crowd were given plenty to cheer when Federer somewhat unexpectedly broke back.
Nadal was dominating the long rallies but Federer won the point of the match with a forehand winner down the line and then the Spaniard missed a forehand.
However, Federer then dropped his serve for the second game in succession and this time there was no reprieve.
The extra conviction in the Nadal game was clear to see, and when he put pressure on Federer again in the fifth game of the second set the 32-year-old wilted once more.
This time a tame forehand into the net conceded the break, and Nadal took victory on his first match point when a Federer volley drifted long.
The six-time World Tour Finals champion has taken confidence from his results this week, particularly the win over Del Potro, where he dug himself out of several holes.
But his record against Nadal now reads played 32, won 10, with his last victory coming more than a year and a half ago.
Federer said: "I went for it when I had a chance for a break point in the first set. Maybe I shouldn't have, but I did. No regrets there, I guess.
"I just struggled to stay consistent enough throughout the match, and that's why he deserved to win. He was better today."
Struggling to stay consistent enough has been a byword for Federer's season, with a back problem that dogged him on and off throughout the year certainly not helping.
The positive for the Swiss is the end of his season has been much more positive than looked likely when he succumbed meekly to Tommy Robredo in the fourth round of the US Open.
Federer has felt confident in his physical condition again and confidence in his movement and his game has slowly been coming back.
He began well against Nadal and had he taken one of three break points in the sixth game, it may have been a different story.
Nadal took his chance to lead 5-4 but Federer delighted his legion of fans with some vintage play to level.
Once more, he could not sustain it, though, dropping serve again immediately and this time there was no reprieve.
Nadal always looked the more solid during the second set and goes through to his second final at London's O2 Arena, having lost the first to Federer three years ago.
Federer's last three tournaments have brought him a final appearance on home soil in Basle and semi-finals at the Paris Masters and here, while three of his four wins over top-10 players this season have come in the last nine days.
Asked about his targets for next season, he said: "Winning five titles or something. Leaving the tournaments as a winner, that's what keeps things exciting. Rankings; if it's not world number one, then I'm not that interested.
"I think something's possible for next year. I think it was a stronger finish than I thought it was going to be in Basle, Paris and London.
"I'm more positive now looking ahead than I would have been a few months ago where I wasn't quite sure what to expect after the US Open.
"I'm back confident and excited going into the off season and starting again next year.
"I need to make sure I stay competitive, that I can hang with the best, and particularly beat the best."
Nadal, who will play either Novak Djokovic or Stanislas Wawrinka in the final, is now one victory away from the only major title he has not yet won.
The 27-year-old said: "The most important thing is on the toughest surface for me to play I was able to win four matches against top-eight players. That's great news for me. It's a very good way to finish the year.
"Now remains the last match. I hope to be ready for that. I know it's going to be a difficult one. But I will try my best. I need to play my best match to have a chance tomorrow."

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