Top seed Novak Djokovic crashed out of the ATP-WTA Indian Wells Masters on Monday, losing in three sets to Italian lucky loser Luca Nardi.

Nardi, ranked 123rd in the world, played superbly to win 6-4, 3-6, 6-3 as Djokovic's return to Indian Wells ended in a stunning third round exit.

Nardi became only the sixth player ranked outside the Top 100 to defeat a world number one at the Masters level since 1990.

Djokovic has now lost five of his last seven matches played against Italians - including three featuring fourth-ranked Jannik Sinner.

Nardi meanwhile was almost as shocked as his opponent after his sensational upset.

The 20-year-old lost in the final qualifying round to Belgium's David Goffin and only remained in the tournament after one of the main draw players pulled out.

"Before this night no-one knew me," Nardi said in an on-court interview after his win. "I hope the crowd enjoyed the game; I'm super happy with this one.

"I don't know. I think it really is a miracle. I'm a guy ranked outside the top 100 in the world and now I'm beating Novak -- crazy, crazy."