Nate Diaz's coach wants to see him face Conor McGregor for a third time.
The American returned to the octagon last weekend, losing to Leon Edwards at UFC 263.
Diaz has been linked with fighting Demian Maia, but Cesar Gracie favours a third bout with McGregor.
Gracie told MMA Fighting : “I would think the trilogy versus [Conor] McGregor [is the best option for his next fight].
"I know that Nate wants tough fights. He is motivated by fighting the best guys.”
On Maia, he added: “I know there has been speculation on whether Nate will accept the fight with Demian Maia. Although I have not yet talked to Nate about his thoughts on this fight, I can tell you that I am completely against the idea.
"Demian has been a great representative of Brazilian jiu-jitsu on the mat and in MMA. He has accomplished much and we all respect him.
"He is still a dangerous opponent but I don’t feel Nate has anything to gain from this fight.
“If he were to lose, he would be losing to a 44-year-old that is on his way out of the sport and if he won it would be to a 44-year-old man that is leaving the sport. It is a no-win situation.”
McGregor is currently training for another trilogy fight, with the Dubliner taking on Dustin Poirier in Las Vegas on July 10.
The Notorious says he feels very confident ahead of the UFC 264 contest, telling Fox Sports: "All the marbles are on the line. I'm here training very, very hard. I'm about to go for my second session of the day. I'm in great condition already.
"I beat him in the original bout [in 2014]. I lost in the rematch. And then we've got trilogy, I've got a few little adjustments to make.
"I feel very, very confident. I'm very focused and driven. And I'll go in there and put on one hell of a performance and get it back on July 10th."
Predicting how the fight will finish, McGregor added: "I'm gonna crack him with a jab and he's gonna wobble and I'm gonna put him away early. It is going to be a first-round KO, mark my words."
