| Last updated
Diaz, 36, made his sensational return to the octagon in June against Leon Edwards at UFC 263 in Glendale, Arizona.
The UFC star suffered a unanimous decision defeat in his welterweight fight at the Gila River Arena, despite mounting an incredible offensive display in the final round.
Despite his loss to Edwards, Zahabi praised Diaz by saying that he would beat "99 per cent of fighters" if he was in a fight that had no time limit.
The Tristar Gym head coach, who worked closely with UFC legend Georges St-Pierre, claimed that a person would be in for the 'fight of their life' against the Stockton Slugger in the streets.
Speaking on the Tristar Gym YouTube channel, Zahabi said: "If you put him in a fight where there is no time limit, I think he beats 99 per cent of fighters. You can't sub him. You can't finish him.
"The guy doesn't stop walking forward. He puts volume on you. He is the scariest, in my opinion, street fighter in MMA.
"I think if you had to fight him in the street, man, you are in a fight for your life. Ain't going to be no judges standing you up between rounds.
"There's no judge to come and give you the win. No, no. This guy ain't going away.
"I think if he had a no time-limit fight with Leon Edwards, he beats Leon Edwards -- and I have a tremendous admiration for Leon Edwards."
During the build-up to their mega-fight in 2020 -- which fell through for the fifth time -- Tony Ferguson touched a nerve with Khabib when he claimed that the MMA legend had never had a street fight.
"HEY! HEY! SUNGLASSES!"
"IN STREET FIGHT I CAN EAT YOU."
Oh wow, 10-8 Khabib :joy:#UFC249 pic.twitter.com/jatPb4voKd
- UFC on BT Sport (@btsportufc) March 6, 2020
Khabib, who retired after his victory over Justin Gaethje at UFC 254, is well known for his unorthodox training methods.
One of those unorthodox training methods included the 32-year-old Russian superstar's history of wrestling bears as a child.
Despite Khabib's tough-as-nails reputation, Zahabi claimed that Diaz is "probably the best street fighter."
He explained: "The knock to that is, that's not our sport. You agreed to five five-minute rounds and we're prepping for that.
"Of course, Leon Edwards could have done a different preparation if he was fighting a no time-limit fight. I just think that even with a different preparation, Diaz wins.
"I think Diaz is the greatest, probably the best street fighter -- and by that I mean no rules, no judges, we just fight until one of us is done, until one of us quits or is dead -- I think Diaz wins 99 per cent of the time."
Chosen for YouChosen for You
Most Read StoriesMost Read