It was his first Association of Tennis Professionals (ATP) World Tour final title and with the victory, Murray finishes the year as the best player in the world.
“I’m very happy to win and to be world number one is very special, the Scot said. “It’s very special playing against Novak in a match like this.”
Murray, 29, extended his career-best winning run to 24 matches.
The victory at London’s O2 Arena also ends Djokovic’s four-year run of success at the tournament and the Serb’s bid to equal Roger Federer’s record of six titles.
Murray, who had won 10 of the pair’s previous 34 encounters, added: “We’ve played Grand Slam finals and Olympic finals before, but I am very happy to win”.
In the semi-final game, Murray had battled back from a set and a break down to beat Milos Raonic and book his place in the final.
Murray looked out of sorts in the opening set and first three games of the second, but he then rallied and eventually prevailed 5-7 7-6 7-6 in a tournament-record three hours and 38 minutes.
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