Montanes broke the Italian four times in the match, including the only break of the third set, and won 50 percent of the points on Fognini's second serve.
Later Wednesday, Juan Ignacio Chela of Argentina faced countryman Horacio Zeballos in a second-round match. In other late play, No. 2 Stanislas Wawrinka of Switzerland played Victor Hanescu of Romania and No. 5 Juan Monaco of Argentina faced countryman Eduardo Schwank.
Top-seeded Nicolas Almagro was to face Leonardo Mayer on Thursday in a second-round match.
Fabio Fognini reaches Movistar Open quarterfinalsPalop commits to Sevilla