The 20-time Grand Slam champion was up against seven other Swiss athletes for the men’s awards.But he missed out to Schurter, who finally won the gong at the TENTH attempt.
It was a tough nut to crack," Schurter said in his acceptance speech.
"But the most difficult victories are also the most beautiful. To receive this award is a great honour for me.
"Roger Federer is known everywhere.
“To beat him in such a vote, in which the audience decides who wins, is a great honour.
Schurter earned around a third of the votes in the ceremony on Sunday, with Federer coming in second.
Federer is currently enjoying the tennis off-season before he begins his preparations for the Australian Open in January.
The 37-year-old won in Melbourne last season and is one of the favourites to clinch the men’s singles title in 2019.
Meanwhile, Mark Philippoussis has admitted he didn’t predict Federer would become the greatest men’s player of all time when the Swiss started out.