Russia's Elena Dementieva defeated a hobbling Serena Williams 6-3, 6-2 at the Olympic tennis centre on Friday to win the Sydney International for the second year in a row.
Dementieva completely outplayed the American world number one, who was troubled by a sore left knee that restricted her movement.
Williams started the match with the knee already strapped and although she finished the match, she seemed distracted by the injury, missing a string of shots she would normally make in a worrying sign ahead of next week's Australian Open.
Dementieva's win provided her with her 15th WTA title and her second in Sydney after she beat Dinara Safina in last year's final.
Baghdatis, Gasquet advance
Meanwhile, Richard Gasquet and Marcos Baghdatis continued to enjoy a welcome return to form by advancing to the men's final with contrasting victories on Friday.
Gasquet, who was embroiled in an arduous and messy doping case which he was eventually cleared of, defeated his fellow Frenchman Julien Benneteau 6-3, 7-5 to reach his first ATP final since Stuttgart in 2008.
Baghdatis had to work much harder before booking his place in the title match with a 6-4, 6-7, 7-6 victory over American Mardy Fish at the Olympic tennis centre.
The popular Cypriot made the Australian Open final in 2006 but has been plagued with injuries since and missed the last two grand slam events of2009.
The world number 42 had the chance to wrap up victory in straight sets but squandered a match point in the second and had to wait until the deciding tiebreak for another opportunity in a thrilling encounter.
"I had some moments of the match that I lost my concentration, but the most important thing is that I won the match and I'm playing a final tomorrow, so that's pretty positive," Baghdatis said.
"It's nice at the beginning of the year to play in a final and have a chance to win another title."
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