The Ultimate Fighter season 5 winner Nate Diaz's desire to compete in both the UFC's lightweight and welterweight division may be coming closer to reality, as he is in talks to make his welterweight debut at UFC 111 in March. IFL veteran Rory Markham is the leading candidate to face him, according to a report from MMAJunkie.com.

If booked, the Diaz vs. Markham bout will likely end up on the night's preliminary card with the event's main card being set. The last spot on the UFC 111 main card bout most likely will be a welterweight rematch between Jon Fitch and Thiago Alves, which has yet to be officially announced by the promotion.

Following a recent loss, Diaz expressed the desire to move up to welterweight, citing the toll his body has taken to cut down and make 155-pounds. He recently stated that his walk-around weight is 190-pounds, which is that of a UFC welterweight.

Diaz (11-5) suffered a close split decision loss against Gray Maynard at last week's UFC Fight Night 20. The loss was his third in his last four bouts, with previous losses coming to Joe Stevenson and Clay Guida. Despite his recent slump, Diaz has put together a solid 6-3 record in nine fights with the UFC, scoring notable Octagon wins over the likes of Manny Gamburyan, Kurt Pellegrino, Josh Neer and Melvin Guillard.

Markham (16-5) last saw action in a first-round knockout loss to Dan Hardy at UFC 95 in February 2009. He has not fought since the loss due to injury.

First, Markham withdrew from his proposed welterweight bout against T.J. Grant at The Ultimate Fighter 9 Finale in June due to an undisclosed injury. Then, he was forced out of his bout against Martin Kampmann at UFC 108 on Jan. 2 after he pulling his Achilles' tendon.

Prior to the loss at UFC 95 in February, Markham scored a highlight reel knockout victory over Brodie Farber in his UFC debut in July 2008 at UFC Fight Night 14. The victory earned him the "Knockout of the Night" honors.

UFC 111 is set for March 27 at the Prudential Center in Newark, N.J., and will be headlined by a UFC welterweight title bout between champion Georges St. Pierre and challenger Dan Hardy.

Make sure to check back with us the day of the event for free, live, round-by-round coverage of UFC 111 right here at FiveKnuckles.com! Join expert analyst Mike Williams as he takes you through the entire fight card blow-by-blow and then keep it right here for all the post-fight news and notes you can handle!