Federer's disappointing year continues with 6-4, 6-7 (5), 6-3 loss to Monfils in Shanghai

France's Jo-Wilfried Tsonga celebrates after defeating Japan's Kei Nishikori during the mens singles match of the Shanghai Masters tennis tournament at the Qizhong Forest Sports City Tennis Center in Shanghai, China, Thursday Oct 10, 2013. Tsonga won 7-6, 6-0. (AP Photo) (The Associated Press)

Kei Nishikori of Japan, bottom, receives medical treatment during his singles match against Jo-Wilfried Tsonga of France at the Shanghai Masters tennis tournament at Qizhong Forest Sports City Tennis Center, in Shanghai, China, Thursday, Oct. 10, 2013. (AP Photo/Eugene Hoshiko) (The Associated Press)

Roger Federer fell to another early loss Thursday, with Gael Monfils beating him 6-4, 6-7 (5), 6-3 in the third round of the Shanghai Masters.

The 17-time Grand Slam champion, who has slipped to No. 7 in the rankings, was playing in his first tournament since losing in the fourth round of the U.S. Open.

Federer rallied from a break down in the second set and 5-3 down in the tiebreaker, but couldn't recover after being broken early in the deciding set.

Monfils, who had a 1-6 record against Federer coming into the match, next plays the winner between top-seeded Novak Djokovic and Fabio Fognini of Italy.