Djokovic was beaten by Federer earlier in the week made a comeback and won in straight sets.
Novak Djokovic proves once again that he is the best by clinching a record fourth successive ATP World Tour title as a season ending trophy.
The world number one responded to a defeat by Roger Federer earlier in the week by beating the six-time world champion 6-3, 6-4 within 80 minutes.
“I am enjoying every moment on the court, I cherish every moment after dreaming of it as a kid,” he said.
He will end his season with a remarkable 11 titles including three Grand Slams, taking his total to 10 majors.
The 28-year-old has now won the season finale five times and surpasses Ivan Lendl’s 1987 achievement, when he won his third straight Tour Finals title in New York.
Also, aside from the trophy, another 1,300 ranking points and a cheque for £1.4m, Djokovic also draws level with Federer at 22-22 in career meetings.
Federer said: “It is never fun on the not winning side, but it is better than not playing at all like last year. This week was great, there were some crazy points tonight, but like plenty of times this year Novak deserved it.”
Federer defeated Djokovic indoors for the first time since 2012 on Tuesday, but the latter responded in simply irresistible style as he dispatched first Rafael Nadal and then, in the final, Federer.
It ended with a double fault as even the 17-time Grand Slam champion wilted under the pressure of such relentless accuracy from his opponent.
The pair have shared 11 of the last 13 season-ending titles between them, but it is the Serb who now dominates.