Valencia, Valencia, Spain, 28 October 2015 | AP

Nick Kyrgios has been knocked out of the Valencia Open in the first round, beaten by German qualifier Daniel Brands 6-4 2-6 7-6(3).

The Australian world No.30 got off to a quick start in the opening set on Tuesday, breaking Brands in his opening service game as he raced to a 4-1 lead.

However, a loss of concentration saw him drop his serve twice in succession and he soon found himself 5-4 down.

The 170th-ranked Brands then capitalised on a series of loose shots from Kyrgios to take the first set.

Kyrgios levelled the match after breaking Brands twice in a four-game run in the second set, and looked to have the momentum going into the final set.

But with both men holding serve throughout the deciding set, it came down to a tiebreak.

The German produced the more consistent tennis to secure five match points at 6-2.

Kyrgios saved the first with a second serve ace but was powerless in the next point as Brands served out the match with an ace.

“I think the key today was to stay calm and just to focus on the important points. I think I played some good points today and a really good match,” said Brands, who in qualifying beat Kyrgios’ friend and compatriot Thanasi Kokkinakis.

Brands next faces Spaniard David Ferrer.

Another Aussie, Bernard Tomic, is seeded third in Valencia and takes on Uruguayan Pablo Cuevas.