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Davide Sanguinetti's amazing week culminated in victory over Roger Federer in the Milan Indoors final as he claimed the first ATP title of his career.

The 29-year-old, in doing so, became the first home winner of the tournament since Omar Camporese in 1992.

Federer, fifth in the Champions Race, was chasing his second title of the season but lost 7-6 (7/2) 4-6 6-1.

Beaten in the second round of a Challenger event in Germany last week, and ousted in the first round of the Australian Open, Sanguinetti had little cause for optimism this week.

But, after wins against Juan Carlos Ferrero, Younes El Aynaoui and Nicolas Escude, he took the first set of the final to the plainly obvious delight of the Milan crowd.

Federer's tussle with Greg Rusedski was decided in two tie-breaks on Saturday, but the Swiss lost out in the first-set breaker in the final.

Federer broke in the Italian's first service game of the second set though and held to level the match at a set apiece.

Performing below the level he needed to defeat Greg Rusedski in yesterday's semi-final, second seed Federer was being equalled from backcourt by his determined opponent.

A remarkable backhand pass from way behind the baseline, when he had looked beaten, gave Sanguinetti break-point in the fourth game of the deciding set and a fine overhead at the net moved him into the ascendancy.

It was soon 15-40 on the Italian's serve, but he hung in and held to go 4-1 ahead.

Inspired by that save, he broke again and served for the match at 5-1.

Federer went long with a lunging backhand service return on match-point to spark amazing scenes in the arena, with flags waving and exuberant cheering.

Sanguinetti will come down to earth in the next week as he contests a Challenger event in Wroclaw, Poland.

But after this win he said: "I'm the happiest person right now.

"To win my first title in Italy is just incredible. I've never had a week like this before.

"I knew that if I played well I could win today. I've always thought I could belong to the top 30, now I have to prove I can play at this level more consistently.

"I still have a long way to go and I still have a lot of work to do.

"I don't want to be a flash in the pan and I cannot have a big head now."

Having lost in three previous finals, Sanguinetti was determined to make amends.

"I was running all over the court today; I probably surprised him," he added.

"He helped me to get back into the match when I was 4-1 down in the first set.

"At that moment I started to read his game better, particularly his serve."

Federer later revealed he had a pre-match inkling of what was coming.

"I had practiced with him in Sydney and he kicked my ass," said the Swiss who won the Sydney title.

"I'm not surprised he played so well.

"It would be a dream for me too to win my home tournament."