Roger Federer was upset in the third round of the ATP Cincinnati Masters here Thursday, meaning Rafael Nadal can capture the world number one ranking by winning the tournament. Croatia's Ivo Karlovic defeated Federer 7-6 (8-6), 4-6, 7-6 (5-7) and that means Spaniard Nadal can overtake the Swiss star and top the ATP rankings for the first time with a triumph in Sunday's final. Nadal, who defeated Federer in an epic Wimbledon final earlier in the month, was set to face Germany's Tommy Haas in a later third-round match. Federer has owned the top ranking for 235 weeks but could surrender the spot after losing to the big-serving Croatian giant in a match where his service was never broken. Federer said he did not care whether or not Nadal won the event to take the top ranking spot from him but was going to focus on the Olympics and US Open. “So far it's OK,” Federer said. “I guess I'll analyze and assess my game after the US Open. For the moment it's just all a blur. I mean, it's so many tournaments in a row, big tournaments in a row, it's hard. “It's a tough trip we've got up in front of us now, going back to China and coming back to the Open.” Novak Djokovic and Ernests Gulbis set up their second battle in as many months by reaching the quarterfinals. Third seed Djokovic swamped his second straight Italian opponent as he crushed Andreas Seppi 6-1, 6-2 a day after beating Simone Bolelli in two tie-breakers. Gulbis reproduced his French Open form over luckless James Blake, sending the veteran US seventh seed down to a 6-4, 1-6, 6-3 upset. On Wednesday, Nadal steamrolled to another overwhelming victory this season, crushing Florent Serra 6-0, 6-1. In another late match, Dmitry Tursunov sent 11th seed Richard Gasquet packing, the Frenchman collapsing in the second set to go down 7-6 (10-8), 6-0. Kuznetsova, Safina advance Russian seeds Svetlana Kuznetsova and Dinara Safina advanced to a quarterfinal meeting at a 1.34 million-dollar WTA hardcourt tournament with victories here Thursday before rain halted play. Fourth seed Kuznetsova defeated Portugal's Michelle Larcher de Brito 7-5, 2-6, 6-4 while seventh seed Dinara Safina defeated Swiss ninth seed Patty Schnyder 6-2, 6-2. Another top Russian player, sixth seed Anna Chakvetadze, was on the verge of advancing, leading French 10th seed Marion Bartoli 6-4, 5-4 when showers struck. Nadia Petrova could not join her compatriots in the final eight, the 12th seed falling to Slovakia's Dominika Cibulkova 7-6 (7-2), 6-2. On Wednesday, Russia's Maria Sharapova withdrew just moments after winning a marathon second-round match over Marta Domachowska 7-5, 5-7, 6-2 with an injured right shoulder. Top seed Ana Ivanovic played her first match since a sub-par Wimbledon and was tested by unseeded Czech Petra Kvitova before advancing 6-3, 4-6, 6-3. Jelena Jankovic overcame a partisan crowd in a 6-0, 6-4 victory over Canadian Aleksandra Wozniak in the second round. Garrigues in quarters Anabel Medina Garrigues and Virginia Ruano Pascual won in straight sets over qualifiers Thursday to reach the quarterfinals at the Nordic Light Open. The fifth-seeded Medina Garrigues beat Barbora Zahlavova Strycov of the Czech Republic 6-1, 6-1, and Ruano Pascual downed Maria Elena Camerin of Italy 6-3, 6-2. Iveta Benesova of the Czech Republic, Caroline Wozniacki of Denmark and Camille Pin of France also reached the last eight. Benesova rallied past sixth-seeded Sania Mirza of India 4-6, 6-3, 6-3, the fourth-seeded Wozniacki routed Finnish wild card Emma Laine 6-1, 6-0 and Pin ousted Swedish wild card Johanna Larsson 6-3, 6-2.