Australia’s hopes of reaching the Davis Cup final have been dealt an early blow after Thanasi Kokkinakis lost out in a tight three-set battle to Italy’s Matteo Berrettini in Spain.

Kokkinakis was instrumental in giving Australia an early lead in their quarter-final victory over the US on Friday when he overcame big-serving American Ben Shelton in Malaga.

Skipper Leighton Hewitt had opted to go for broke against the Americans, selecting the 28-year-old ahead of the higher-ranked Alexei Popyrin and Jordan Thompson.

And Adelaidean Kokkinakis nearly delivered again for his country on Saturday before narrowly losing out 7-6 (8-6) 3-6 5-7 in the opening singles rubber.

Kokkinakis, fresh off winning the NSW Open’s ATP Challenger Tour event in Sydney, showed he meant business in a see-saw first set before edging a nervy tie-break 8-6 after Berrettini had contrived to blow three set points.

But backed by vociferous Italian support, Berrettini fought back with some sublime power hitting to level the match and taking the second set 6-3.

And after Kokkinakis finally cracked when suffering a crucial service break at 5-5 in the decider, Berrettini held firm to serve out the match, much delight of the cheering Italian fans.

Chasing a first Davis Cup title since 2003, Australia are bidding to make a third consecutive final after losing to Canada and Italy in the past two deciders.

AAP