The Scot slammed his racket into his bench in frustration during the deciding set.

Bagnis broke Murray in the fifth game of the set before serving out to take the match.

Murray came into the tournament with confidence having reached the final of an exhibition event in Abu Dhabi in December, losing the decider to world number five Andrey Rublev.

But he struggled with a poor ball toss and a disappointing second-serve percentage against an opponent who has never gone past the third round of a Grand Slam tournament.

It leaves the three-time Grand Slam winner with plenty of work to do before this month's Australian Open. Murray has accepted a wildcard for the tournament and will be appearing two years on from what, at the time, looked set to be his final match in the event as he prepared for hip surgery.

Meanwhile, Nick Kyrgios has withdrawn from the men's event in Melbourne because of asthma.

The 26-year-old played only 15 matches in 2021, winning seven of them and has not been in action since late September because of knee issues, slipping to 93rd in the rankings.

He was set to take on Slovakian Alex Molcan but will now begin his 2022 season at next week's Sydney Tennis Classic.