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Roger Federer sparked a major debate on social media earlier this week when he suggested the ATP and WTA should merge to form one super governing body.
World No 2 Nadal was one of the first to publicly back his Swiss rival.
But Rusedski thinks there is a simple solution to making the change happen.
“I think it would be a good idea,” Rusedski told Sky Sports News. “If you look at the biggest events in the world right now, all the four majors they do it.
“The Masters series in Miami, Indian Wells, and Rome, they also have them as combined events. And that’s a good thing for the sport. If you put the men’s and women’s games together, I think it’s a better product. And I think it’s better for the fan.
“Well it’s a very simple formula, where you have the head of the WTA sit down with the head of the ATP. They get together, they try to schedule the events together and make the products work together.
“You’ve got a lot of up-and-coming superstars in the women’s game, with Coco Gauff who we saw upset Venus Williams, had that great run at Wimbledon last year.
“You have [Bianca] Andreescu, the Canadian who won the US Open who’s a youngster as well, and then you have Federer, Nadal, [Andy] Murray, all the great champions. If you had them all on one menu, at the one time, I think it would be brilliant. So I think it is a possibility. Federer has been talking about it a lot, and so has Rafa.”