Federer, the 17-time Grand Slam winner, was not part of the original squads announced by organisers of the Indian Premier Tennis League.
Nadal, who has 14 Grand Slams to his name, had also pulled out of this year's US Open due to a wrist injury.
"There was an injury issue with Rafa, but I am glad Federer was available. Federer is a superstar and has charisma. That will create buzz," Bhupathi, who founded the league, said at a press conference along with India team owner Rahul Sharma from Micromax.
Russian superstar Maria Sharapova will also be now part of the league as she joins the Philippines team, which earlier had Victoria Azarenka.
The league will kick off on November 28 in Manila and conclude in Dubai on December 13.
The Delhi leg will be played from December 6-8 at Indira Gandhi Indoor stadium.
Eric Gottschalk, the chief operating officer of the IPTL, informed that the players initially have one-year contract with the league but the owners will also have choice to trade players from the second year onwards.
If two neutral teams are playing, then a coin toss determines who picks the order of play.
Gottschalk also said that one more team is expected to enter the fray in the second edition and by 2017-18 they plan to make it a eight-team competition.
Micomax's Rahul Sharma said IPTL was a phenomenal initiative.
"We were earlier approached for sponsorship but when we listened to the concept and format, we decided to get a team in it. We have always believed in doing things, never done before, never seen before," Sharma said.
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