Murray tops ailing Nadal (knee)
The top-ranked Nadal was bothered by a right knee injury and had to call a medical timeout in the second set, before deciding to continue the match.
"Rafael was hurt at the beginning of the second set," Murray said. "On one leg he could still go on. That's how good he is."
Murray took the first set after breaking Nadal in the sixth game, but the Spaniard fought back in the second. He struggled, however, with his serve in the third set because of his knee and Murray was able to seal the win with an ace.
Britain's Tim Henman was runner-up here three times, losing the 1999, 2000 and 2002 finals.
Need the scores from any match played in this or any other tournament? Results
"It was a very important week for me, but Andy has had a wonderful year and I would like to congratulate him," Nadal said.
Appearing in his 41st career final, the Australian Open champion wasn't at his best, struggling to counter Murray's powerful service game.
After breaking Nadal's first game in the deciding set, Murray held on to claim his 10th career title.
Copyright 2009 by The Associated Press
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