The second-ranked Federer, who won the tournament in 2006 and was runner-up last year, will return to the court after a layoff of more than three weeks. Federer skipped this week's Stockholm Open saying he needed to rest up as he continues to rebound from a bout of mononucleosis picked up at the start of the year.
"Without a doubt it's a wonderful thing knowing we can count on Roger Federer being here for another year,'' tournament director Manolo Santana said.
The tournament, which starts Monday, could pit Federer against Rafael Nadal for the first time since the Spaniard assumed the No. 1 ranking, which the Swiss star had held for a record 237 weeks. Federer was knocked out of the Olympic tournament in Beijing before a potential matchup with Nadal, who won the gold medal.
The pair haven't met since Nadal ended Federer's bid for a sixth straight Wimbledon crown in June.
"Madrid's conditions and the type of surface are ideal for Roger's game,'' said Santana, a former Wimbledon winner. "We hope he arrives refreshed and that he can allow us to enjoy his best tennis.''
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