Last season’s Prix de l’Arc de Triomphe heroine Danedream lunged late to deny Nathaniel in the King George VI And Queen Elizabeth Stakes at Ascot and become the first German winner of the race.
Nathaniel was attempting to defend his crown in the mile-and-a-half Group One feature, having made a winning return in the Coral-Eclipse at Sandown a fortnight ago.
He looked set to claim victory when quickening into the lead in the home straight, but the Peter Schiergen-trained Danedream (9-1) flew home in the hands of Andrasch Starke to get up by a nose. St Nicholas Abbey came fast and late to take third place.
The John Gosden-trained Nathaniel was one of three horses who had battled for favouritism during the week.
And while he was settled in midfield by William Buick, main market rivals Sea Moon and St Nicholas Abbey were at the rear.
Nathaniel was the first one of the major players to go for home and when he hit the front it seemed as though he would deliver another Group One victory.
But Danedream, who had disappointed in the Grand Prix de Saint-Cloud on her latest appearance, was really motoring inside the final furlong and got up on the line to claim a famous triumph for her German trainer.
St Nicholas Abbey finished well from the back, another length and a half away, with French raider Reliable Man fourth.
Sea Moon, the 2-1 favourite, was further back in the field.
Starke said: “It’s a good feeling. It’s very important for Germany and it’s very good for German racing.
“We’ll go to Baden-Baden [Grosser Preis Von Baden] next and after that we’ll go to the Arc.”