MACAU: Roger Federer said on Wednesday he is braced for the challenge from the new breed at the top of men's tennis but legend Bjorn Borg says the Swiss and world number one Rafael Nadal remain the men to beat.

Federer, ending a gruelling season with an exhibition event in Macau on Thursday also involving James Blake, John McEnroe and Borg, is confident he will remain a contender for top honours.

Federer, 27, also has Australian Open champion Novak Djokovic and Britain's Andy Murray, who beat him in the season-ending Masters Cup, breathing down his neck. "I think it's really special for me being in my shoes right now. It's a very interesting year coming up," said Federer, who is just one behind Pete Sampras's record haul of Grand Slams.

"I feel every five years, 10 years the game shifts a little bit. New players come up," he added. "Right now you have many young up-and-coming players and the rivalry with Rafa is great, especially after the Wimbledon match that we had this year," he added.

He said Djokovic had enjoyed a great year and that he was happy to see Murray playing well, describing the Scot as a player with a 'ton of talent'.

But Federer remains confident he can stay at the top of the men's game. "I always try to improve as a player and always try to reinvent myself," he said.

Borg, the 11-time Grand Slam champion, said in spite of the exciting crop of youngsters pushing the top two, the Federer-Nadal rivalry remained the one to watch. "I like the rivalry between Roger and Rafa. I think they produce the best tennis and bring out the best in each other," the Swede said.

"For me, Roger is the best player to play the game. I believe he has a good chance to be back to number one maybe next year."

Borg's great rival, John McEnroe, said it was a fascinating time for the men's game, with Federer eyeing the Sampras record and the crop of youngsters looking to make their mark. "There's a new number one. There's two younger players, one of whom won his first Grand Slam (Djokovic)," he added. After Macau Federer takes a well-earned break before the 2009 season, which he gets underway in the Middle East ahead of the Australian Open in Melbourne in January.