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The 28-year-old showed his class with an impressive performance on the twisting and challenging 15.5km hilly course around the tiny Principality to claim his fourth stage victory on the Tour and was strong on the climb.

Outstanding on the descent, current Tour of Switzerland champion Cancellara wiped 19 seconds off the previous fastest time set by Bradley Wiggins, who eventually finished third with Astana's Alberto Contador second.

"I am quite proud, I put in the maximum possible effort," said the Swiss rider whose Saxo Bank team will now defend the yellow jersey at least until the next big rendezvous, the team time trial over 39km held on the fourth stage.

"I was one of the favourites to win here before the race and I knew if I got things right it would be very difficult for my rivals to beat me.

"That was special motivation.

"I knew to take it easy on the climb, to avoid too much lactic acid in the legs, and then go hard on the flat. It really paid off.

"To be back in the yellow jersey again is a great achievement both for me and my team, I am proud of it.

"Now everyone now knows Cancellara is back and he is stronger.

"We will now defend the jersey until the team time trial."

The new yellow jersey holder also revealed he had been battling depression in April this year.

"I had a few problems in April, things weren't going my way, but it makes me even prouder to know that I am strong in the head too to come back from that," said Cancellara.

The Swiss star also paid tribute to his team's mechanics, but revealed he had personally paid great attention to his bike.

"I take my hat off to the mechanics, they did a great job," he said.

"But I checked every millimetre, every detail of that bike as I knew the small things would make the difference out here."

Having held the yellow jersey for a week in 2007 when he won the London prologue and then the stage three, Cancellara said he knew it was a good omen when he was given the same Number 33 to wear here.

And Cancellara backed compatriot Roger Federer to win the final of Wimbledon against Andy Roddick of the United States on Sunday.

"We might be from a small country, but we have talented sportsmen," he said with a grin.

Seven-times Tour champion Lance Armstrong, who is back after nearly four years in retirement, showed he still has the potential to worry the leaders as he finished 10th in a time of 20min 12sec - 40 seconds behind the winner.

Armstrong's Astana team-mate Contador, the 2007 Tour winner, was second and 18 seconds behind the winner to claim the polka-dot jersey while defending champion Carlos Sastre finished one minute and eight seconds off the pace.

Germany's Andreas Kloeden finished fourth in a time of 19 minutes 54 seconds, 22 seconds off the winner's pace, while Australia's Cadel Evans claimed fifth after finishing just a second off the German.