The third opera written by Handel for the London stage was to a libretto by his new collaborator Nicola Haym. Haym was a perspicacious man of letters, a composer, arranger, performer, archaeologist, and writer, among other things. After the success of Rinaldo he had sought out Handel for the purpose of forming a professional alliance. A much better librettist than Rossi, their association would prove to be a fruitful one. This first libretto of his was an adaptation of a libretto by the French poet Philippe Quinault, known as Thesee. Haym did not restructure the opera, but kept the French form of a five-act work. Partly because of its French origins, it was not subjected to scenic structure comprised of Italian exit arias. The arias are placed where they can be of maximum dramatic effect and power, and sometimes there are several in a scene. Teseo is also enlivened by magical elements, visual display, elaborate effects, machinery, and fantastical happenings. Its story is a heroic one, and brought out the very best in Handel. He provided vigorous music with a rich harmonic and melodic vocabulary. He was again catapulted to the top of the London operatic scene and made the hero of the moment.

The production of Teseo nearly proved catastrophic, for Owen Swiney, the new manager of the Haymarket theater, absconded with the box office receipts after two performances and fled the country. None of the cast, crew, or orchestra received pay, but somehow they were persuaded to keep on working, and they divided the proceeds of the remaining shows amongst each other.

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