The World No 1 has now reached the semi-finals without dropping a set for the second consecutive year. In 2008 he was beaten by Jo-Wilfried Tsonga, who was knocked out by Verdasco earlier in the day.

"For us it's an incredible feat to have two Spanish players in the semi-final. One is going to be in the final so we have to be very happy with that," Nadal said.

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"Verdasco is playing very well since he won the Davis Cup, he was in the final in Brisbane and he beat (Andy) Murray so I know it's going to be a very tough match."

Nadal, who has been French Open champion since 2005 and added the Wimbledon title last year, has now reached three hard-court Grand Slam semi-finals in a row although he is yet to make a final.

The Spaniard remains on course for a title match with arch-rival Roger Federer, the second seed who is also in superb touch as he seeks a record-tying 14th Grand Slam title. Federer will play Andy Roddick in the semi-finals.

Nadal (22) broke in the very first game and again at 3-1 before Simon took a break of serve of his own. But he manoeuvred the Frenchman expertly around the court for the third break and served the set out with an ace.

Simon double-faulted to go a break down early in the second set but hung in and broke back thanks to a 30-shot rally ended with a stunning winner.

Momentum was shifting but Nadal grabbed it back as he survived a set point at 4-5 then brilliantly broke in the next game helped by a full-stretch running forehand which curled down the line.

Simon secured the first break of the third set with an overhead smash but Nadal broke back and again for 6-5 after yet another lengthy rally, then calmly served out to win.

Nadal has started a season ranked No 1 for the first time after dethroning Federer last August.

He has been in brilliant form here, defeating Christophe Rochus, Roko Karanusic, Tommy Haas and 13th seed Fernando Gonzalez to reach the last eight for the loss of just 28 games.

Simon, who was appearing in his first Grand Slam quarter-final, lost to Nadal here last year but then gained his revenge in October's Madrid Masters semi-finals.

The 24-year-old broke into the top 10 last year with three tour titles, earning a debut appearance at the season-ending Masters Cup.