UPDATE 1-Tennis-My career is not in decline, says Federer

(updates with result of exhibition match against Sampras)

By Larry Fine

NEW YORK, March 10 (Reuters) - World number one Roger Federer dismissed suggestions his career was in decline and said he would use recent defeats as motivation after recovering from a virus.

The Swiss player lost in the first round in Dubai last week by Briton Andy Murray, his first match since defeat by eventual champion Novak Djokovic in the Australian Open semi-finals in January.

"In Switzerland there is a little too much speculation my career is over," the 26-year-old Federer told a news conference before Monday's 6-3 6-7 7-6 victory over former world number one Pete Sampras in an exhibition match at Madison Square Garden.

"People just need to know I'm healthy and happy and not miserable and down and out."

Federer pulled out victory in the good-natured contest by 8-6 in the final set tie-breaker before a crowd of around 19,000 at the Garden, including world number one golfer Tiger Woods, the Swiss champion's friend.

Federer, the 12-times grand slam singles champion, competes at the Pacific Life Open at Indian Wells, California later this week. He was told he was suffering from glandular fever after the Australian Open.

"Honestly, losses like this motivate me more than anything," said Federer. "Trying to come back, trying to prove I'm still the one to beat.