Federer won his third Masters Cup in four years in Shanghai last year

The Masters Series will be cut from nine to eight tournaments with the Cup being moved from Asia to Europe.

ATP president Etienne de Villiers said: "The Masters Cup will be called the ATP World Tour Finals and I would like it to be played in London."

De Villiers added that players who miss top ranking events will be punished.

The strict new sanctions for withdrawals from ATP tournaments will be imposed from 2009, with players fined and even suspended if they do not show up at the top eight elite events.

"We had 384 withdrawals last year," De Villiers said.

"There are no options for these events, it's eight of eight for the players. If you don't show up, you will be fined and suspended.

"We have to put some teeth into this - and you can guess how popular I am with the players right now."

De Villiers also said that one of the eight Masters Series events would be held in China.

Shanghai hosted the end-of-year event in 2005 and 2006 but will still stage the championship this season and next.

ATP tournaments in 2009 will also come under four categories of importance, the four grand slams, the Masters Series, 10 other selected events and others.

The fourth category of tournament will not feature top players.

De Villiers explained: "Just as in football, we have to make clear to the people that tennis also acknowledges a second and third division."