James Ward has failed to reach the final of the Reunion Island challenger after failing to overcome Robin Haase in the last four.
The British number two is attempting to end an already impressive 2014 by gaining automatic entry to the Australian Open in January, but that achievement has been put on hold after the defeat to the Dutchman.
Haase, who pushed Andy Murray in the US Open first round earlier this year, broke Ward's serve twice on the way to securing the opening set, but the 27-year-old Londoner fought hard in the second to take it to a tie-break.
However, Haase, the top seed for the event, dominated the end-of-set decider to wrap up a 6-3 7-6 triumph.
Ward, who began the week at number 119 in the world rankings, will now travel to Traralgon in Australia to try to edge further towards the top 100.