Tournament director Zeljko Franulovic says the top three players in the world will be at the clay-court event from April 9-17 after Federer decided to take part in the tournament to prepare for the French Open.
Federer had initially planned to skip the tournament and limit his clay-court appearances to Madrid and Rome.
Federer is a three-time finalist in Monaco while Djokovic lost to six-time defending champion Nadal in the 2009 final.
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