Greg Rusedski blew three match points in the deciding set as Nikolay Davydenko staged a brilliant escape act to capture the Kremlin Cup title.

Competing in Moscow for only the second time, having been beaten in the first round when competing as a Canadian in 1994, the British number two was on the brink of victory against his Russian opponent.

But Davydenko found extra strength and pulled off a 3-6 6-3 7-5 victory.

"I had match points and I guess it was supposed to be his week," said Rusedski.

Rusedski led by a break at the start of the decider, then after being dragged back onto level terms he had Davydenko in deep trouble when the Russian was serving at 5-4 down, with three separate break points against him.

Unable to capitalise on either opportunity, Rusedski urgently needed to put in an immaculate service game to make Davydenko again serve to stay in the match, but he fell apart.

Davydenko charged to 40-love on the Rusedski serve, and although two break points went by the wayside, the third was snaffled up and he led 6-5.

"That's the way it goes sometimes," added Rusedski.

"My aim was to win this tournament and I'm obviously disappointed having wasted three match points."

To the delight of the Muscovites, Davydenko served out for the match, to deny Rusedski the chance of a second title in 2004.

Rusedski triumphed at Newport, Rhode Island, in July, a result which saw him re-enter the top 100, and results since then meant victory would have lifted him to the brink of the top 50 - as well as securing him a 15th career title.

All looked to be going well when Rusedski, unseeded and chasing his fourth seeded victim of the week, took the opening set.

He claimed a decisive break of serve in the fourth game and fended off Davydenko's bid to hit straight back.

That dampened the hopes of a home win double, Anastasia Myskina having earlier prevailed in an all-Russian women's final against Elena Dementieva.

Rusedski, 31, has been through a difficult year, which began with him having to defend himself after a drug test revealed nandrolone in his system.

Since being cleared of a doping offence by the ATP in March, however, Rusedski's improvement has been encouraging.

"Obviously it has been a positive week, winning four matches and getting to the final," Rusedski told BBC Sport Online.

And despite frustrating results in the four Grand Slam tournaments, in which he won just one match, this week has confirmed the British number two as a power to be reckoned with again.

But after the Briton edged ahead, eighth seed Davydenko made the best possible start to the second set, holding his own serve and then breaking Rusedski to establish early charge.

That was the only break of the second set as Davydenko never wavered on his own serve.

Rusedski, looking to make amends for a sloppy set, darted into a 2-0 lead in the decider but then missed a break point for 3-0 and was soon hauled back to 2-2.

Serves then dominated until the 10th game.

If it had been nervy up to that stage, then soon it was to become a nailbiter.

Davydenko faltered, and Rusedski had three separate match points, to secure an £80,000 winner's cheque and a stack of world ranking points, as well as the prestige of holding aloft another trophy.

For Rusedski the consolation was £60,000 for his week's work and elevation into the top 60, but not the title he craved and came so close to.