Defending champion Roger Federer on Thursday crashed out of Australian Open in semifinal, while Chinas Li Na set record to become first Chinese player to enter Grand Slam final.

World No. 2 Federer, who is playing his 8th consecutive Australian Open semifinal, was defeated by third seed Serbian Novak Djokovic 7-6 7-5 6-4 in three hours and one minute. Djokovic also beat Federer at the same stage of the U.S. Open last year.

After the Serb claimed a tight first set on a tie-break, second seed Federer appeared to have turned the match around when he opened a 5-2 lead in the second.

But the Swiss, a 16-time grand slam winner, then suffered complete meltdown, losing five games in a row to hand Djokovic a two-set lead.

And Djokovic came through a topsy-turvy third set, breaking for 5-4 and serving out victory on his third match point.

"Sure it's disappointing: it hurts in the moment itself," Federer told reporters. "I wish I could have won here for the fifth time but it was impossible tonight."

Djokovic ends the Swiss' bid to become the second man in history to win five Australian Open title. The last man to do so was Roy Emerson, who won the 5th Australian title in 1966 before he went on to win the 6th Australian title in 1967.

With World No. 1 Nadal Rafael out of the tournament amid doubts over his fitness and now Federer beaten, Djokovic's triumph may have signaled a changing of the guard at the top of men's tennis. He will next meet either 5th seed British Andy Murray or 7th seed Spanish David Ferrer, who defeated Nadal earlier on Wednesday.

The 11th seed Li Na made history for China's tennis on Thursday. Apart from becoming the first Chinese player to make it to a Grand Slam final, she is also the Asia's first.

Li kicked out World No. 1 Danish Catholine Wozniacki 3-6 7-5 6- 3 in Thursday's semi-final.

Li was the first Chinese player to win a WTA Tour event, the first to break the top ten and then the first, along with Zheng Jie, to reach the last four of a Grand Slam.

"I'm so happy I can be the first Chinese player to come to a final - I always do the first one!" Li told reporters in Melbourne after the game.

Having reach the finals, Li is projected to return to World's top 10 next week at No. 7. She will become No. 5 if she wins the title, while a Grand Slam champion would also inspire a rush of new tennis players in China.

Li will on Saturday face three-time U.S. Open champion Kim Clijsters, who on Thursday comfortably defeated second seed Russian Vera Zvonareva with an awesome display of power tennis by 6-3 6-3 in just 73 minutes.

While it is going to be the first Grand Slam final for Li Na, Clijsters said she does not consider it is going to be a disadvantage for Li because of her lack of experience.

"She's played big matches. She's a little bit older and been on tour, so it's not like she's a teenager and coming up and is overwhelmed by the whole situation," Clijsters said.

"I think she's a good player. I think we're very similar type of players. You know, I think we have a lot of things in common on the court."