While Andy Murray's rise to world number one was the main talking point of Monday's new ATP rankings, 17-times major champion Federer's slide to 16th was largely overlooked.
The Swiss ended his season in July in a bid to recover fully from knee surgery, although he is aiming to be fit for the Australian Open in January.
At 35, however, logic suggests Federer's days of challenging for silverware may be numbered. His last grand slam title came at Wimbledon in 2012.
But former world number one Edberg, who has coached Federer, disagrees.
"I thought in the past years he would have won one, he was so close," six-times major champion Edberg told Tennis World.
"It becomes even tougher, he is not young any more but there is still hope. If there's one who can do it, it's Roger," the 50-year-old Swede added.
"But it will be an emotional challenge for him to come back next year."
(Writing by Martyn Herman, editing by Ed Osmond)
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