UPDATE 1-Tennis-Federer to face Nalbandian in hometown final

(Updates with Federer win and quotes)

By Mark Ledsom

BASEL, Switzerland, Oct 25 (Reuters) - Roger Federer will take on David Nalbandian in the Swiss Indoors final after the Basel-born, world number two's bid for a third straight hometown title continued with an easy semi-final win on Saturday.

The top seeded Federer booked his place in Sunday's decider with a 6-3 6-2 victory over unseeded Spaniard Feliciano Lopez while second seeded Argentine Nalbandian saw off compatriot and Davis Cup teammate Juan Martin Del Potro 6-4 6-4.

Federer faced two break points in his second service game against Lopez but defended them calmly with a service winner and an ace.

After that he had no further problems -- hitting a total of 15 aces and breaking Lopez three times to complete his seventh win in seven matches against the Spaniard.

"I had a bit of difficulty at the start," acknowledged Federer. "But then I found my rhythm and my serve was working even better than normal so I'm really happy about that."

Federer said he expected a tougher challenge on Sunday from Nalbandian, whose 8 wins and 9 losses in previous matches against the Swiss is one of the best records on the tour.

"Nalbandian? Never heard of him," the 13-time grand slam champion joked when asked about the prospect of playing the Argentine once again.