An early break saw him forge 5-2 ahead and when Federer served to stay in the match, he was unable to offer more than token resistance, hitting long as Murray sealed an epic and deserved victory.

"I've been known for losing a lot of tough matches and big matches, especially here a few times, and having never beaten Roger in a big match until the Olympics," he said in his court side interview.

"That obviously helps but it doesn't make it any easier when you're trying to serve it out."

The 31-year Federer insisted he would bounce back after his third straight semifinal loss in Melbourne and dismissed notions that he would struggle to compete with younger rivals such as Djokovic and Murray.

"I go from here with a good feeling for the year. I didn't play a tournament leading in, so now obviously I know where my level is at," he told gathered reporters.

"I also know that I have even more time to work on my game, work on my fitness this year. It's something I'm excited about."

Saturday will see the women's final between World No.1 Victoria Azarenka and former French Open champion Li Na.

The championship will close when Murray and Djokovic lock horns 24 hours later, with spectators hoping for a repeat of their epic semifinal clash last year where the latter prevailed in a five set thriller before beating Rafael Nadal in a marathon final.

Nadal, the other member of the 'big four', is currently sidelined by a long-term injury but intends to make his comeback next month.