Youzhny defeated Frenchman Arnaud Clement 6-4, 6-3. He is one of a small group of players in the running for the two remaining spots in Shanghai, where the tournament featuring the top eight players in the world starts on Nov. 11.
Youzhny, who now has 296 points in the ATP Race standings, next faces seventh- seeded Chilean Fernando Gonzalez.
Former world No. 1 Juan Carlos Ferrero of Spain was also ousted Monday, losing to Marcos Baghdatis 6-4, 6-2.
Also, American Mardy Fish beat Russian Dmitry Tursunov, 7-6 (9-7), 6-4; Argentine Juan Martin del Potro beat Spain's Feliciano Lopez, 6-4, 6-3; and Switzerland's Stanislas Wawrinka beat Germany's Nicolas Kiefer, 7-5, 6-3.