Federer, the 17-times Grand Slam champion, was expected to face Gilles Simon in their second-round clash on Tuesday, but the Swiss veteran has elected to stay with his family.
"I’ve decided to withdraw from Madrid to be with my wife Mirka during these next few exciting weeks for our family," Federer said on his Facebook page.
"I apologize to my fans and hope to be back in Madrid next year. I’ll be training near my home, and am excited to rejoin the Tour soon!"
It is a boost for Simon, whose match against Benoit Paire was abandoned after two games with his fellow Frenchman injured, and also for Rafael Nadal, who has seen Novak Djokovic, Juan Martin Del Potro and Richard Gasquet all pull out of the clay court tournament.
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