The two all-time greats get star billing in London after each won two Grand Slams and locked down the top two rankings spots as Novak Djokovic and Andy Murray had injury-plagued seasons to forget.
The eight-man field at the O2 Arena has an unbalanced look about it but 20-year-old Alexander Zverev leads a hungry chasing pack, desperate to stake a claim to membership of the game's elite.
"I hope. And if I didn't believe I can be ready, for me, I wouldn't be here," said the Spaniard, who will also do battle with Dominic Thiem and Grigor Dimitrov in the 'Pete Sampras' group.
"I'm working every day, practising well and just trying to be ready for the action."
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The 31-year-old, forced to pull out of the Paris Masters last week with a knee injury, is painfully aware that the ATP Finals is the one major piece of silverware missing from his trophy cabinet and he wants to put that right.
And Nadal said although he welcomed the opportunity to finish the year with another high-profile clash against Federer, he was not fixated on the need to defeat the Swiss after four straight losses to his old rival in 2017.
- Federer chases seventh title -
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Federer, chasing his seventh Tour Finals title, is happy to be back at the end-of-season showpiece after missing out last year during a long layoff.
Federer, at the grand old age of 36, said he felt fresh after a season that had exceeded his expectations.
"This year I ended up playing much less than I thought I would. Because of the great start to the season I didn't have to push it that much to be honest, which was great," he said.
The most likely candidate appears to be Zverev, who has rocketed up the rankings to number three after an outstanding season in which he has won five tournaments, including two Masters titles.
"Winning two Masters series is specal for any player in an era where the top events have been monopolised by the 'Big Four'," said the German, who is in the 'Boris Becker' group along with Federer, former US Open winner Marin Cilic and Jack Sock.
He added that the younger generation was making a push towards the top of the game to challenge the existing powers.