Carlos Alcaraz was in action for Spain in their Davis Cup Finals tie today, but was beaten in three sets by Felix Auger-Aliassime ©Getty Images

World number one and US Open champion Carlos Alcaraz was beaten in his first Davis Cup Finals appearance this year for Spain, who were defeated by Canada in the day's Group B tie in Valencia.

After sitting out Spain's opening Davis Cup Finals tie, which the nation won against Serbia, Alcaraz, who at the start of the week became the number one in the men's rankings, played the second rubber against Felix Auger-Aliassime of Canada.

Alcaraz took the first set on a tiebreak against the world number 13, before Auger-Aliassime bounced back to win the next two sets for a final scoreline of 6-7, 6-4, 6-2.

In the opening singles rubber, Roberto Bautista-Agut of Spain had beaten Vasek Pospisil from a set down 3-6, 6-3, 6-3, giving Alcaraz the opportunity to win the tie if he could prevail in his singles match.

Instead the tie went to a decisive doubles rubber, with Auger-Aliassime and Pospisil teaming up to take on Marcel Granollers-Pujol and Pedro Martinez Portero.

It was the third match of the day to go three sets, and with the time at the Pabellon Fuente de San Luis nearing 1am Auger-Aliassime and Pospisil sealed victory 4-6, 6-4, 7-5.

Elsewhere, five teams booked their places in the quarter-finals of this year's event.

Italy confirmed their place in the last eight after a 2-1 win over Argentina in Group A.

Group hosts Italy took the lead in the tie at the Unipol Arena in Bologna when Matteo Berrettini overcame Sebastian Baez 6-2, 6-3.

Jannik Sinner then confirmed victory in the tie as he won the second singles rubber 7-5, 1-6, 6-3 against Francisco Cerundolo.

Argentina then won the doubles rubber as Maximo Gonzalez and Horacio Zeballos triumphed 7-5, 2-6, 6-3 against Simone Bolelli and Fabio Fognini.

In Group C group hosts Germany also booked a quarter-final berth with a 2-1 victory over Belgium at the AM Rothenbaum in Hamburg.

Germany took the lead in the tie when Jan-Lennard Struff beat Zizou Bergs 6-4, 7-6, before David Goffin levelled proceedings when the Belgian defeated Oscar Otte 3-6, 7-6, 6-3.

Germany then claimed the tie in the decisive doubles rubber with Kevin Krawietz and Tim Puetz winning in a third set tiebreak against Sander Gille and Joran Vliegen 6-4, 2-6, 7-6.

Germany’s victory also ensured Australia, who have won both of their first two group matches, secured their place in the last eight.

In Group D Netherlands booked their place in the next phase of the competition after a 2-1 victory over group hosts Britain at Glasgow's Emirates Arena.

Britain took the lead in the tie when Dan Evans overcame Tallon Griekspoor 6-4, 6-4, before Botic Van De Zandschulp levelled the contest as he beat Cameron Norrie 6-4, 6-2.

The Dutch then secured victory in the decisive doubles rubber, which lasted just under three hours, as Wesley Koolhof and Matwe Middelkoop won 7-6, 6-7, 6-3.

The Netherlands victory also booked the United States a berth in the quarter-finals.