(CNN) -- World No.1 Novak Djokovic ended up on the losing side in the Hopman Cup final Saturday just 24 hours after it was announced that the ATP 250 tournament he owned back in his native Serbia had folded.
Djokovic and former World No.1 Ana Ivanovic were beaten in the deciding mixed doubles 6-4 7-5 by Fernando Verdasco and Anna Medina Garrigues as Spain won the final 2-1 to claim the trophy at the mixed team event in Perth.
Djokovic beat Verdasco in the opening rubber 6-3 7-5 but Ivanovic suffered a surprise 6-4 6-7 6-2 defeat to veteran baseliner Garrigues in their singles tussle as Spain drew level.
Djokovic's family has run the Serbia Open tournament, which was scheduled to take place from April 29 to May 5 in Belgrade, since 2009.
Staged on an outdoor clay court, it acted as a warm-up event for the French Open and was the first ATP tournament to be held in the country..
He had won the title twice, most recently in 2011, while Italy's Andreas Seppi claimed the crown in 2012 in what has turned out to be its last staging.
Djokovic had opted not to play in his own event, dramatically reducing its appeal.
A statement by Djokovic's Family Sport company, the tournament organizers, was posted on the official ATP Tour website to confirm the decision, but without giving any reasons.
"We have made the most rational decision considering the circumstances. We are grateful for everyone's contribution and help in running this event that brought a lot of international stars and attention to Serbia," it read.
"Unfortunately, we will not be able to run the Belgrade tournament and we have decided to cease the tournament's operations from 2013."
Djokovic has suffered mixed fortunes since arriving in Australia for the defense of the title at the opening grand slam of the season later this month.
Jetlagged on his arrival from Abu Dhabi, he suffered a scare when a crowd barrier collapsed on him during his opening match, a straight sets win over Seppi.
He was also beaten by Bernard Tomic in his singles rubber in the match against hosts Australia, but against Verdasco in the final he showed the form which has kept him at the top of the world rankings for the past two seasons.
He then had to watch Ivanovic lose a two-hour 38 minute tussle with Garrigues before they were second best in the doubles.
Last year, the Serbian duo reached the final, but an abdominal injury to Ivanovic ended their chances.
"We were unfortunate last time, this time we were beaten by a better team," Djokovic said after their defeat.