The Spaniard - who scored the only goal in a 1-0 first-leg win for the Rossoneri - missed the weekend's Serie A loss to Fiorentina due to a knee sprain and has recently been restricted to individual training.
Diaz is supposedly still hopeful of proving his fitness, but a spot on the bench will most likely await if he is given the green light to travel, and Pioli has no other injury concerns to factor in.
The Rossoneri left Mike Maignan off their squad list for the first leg due to his calf injury, but the French goalkeeper has now fully recovered and can be added back into their European squad by 8pm on Monday.
Milan should not pass up their opportunity to play their first-choice shot-stopper - consigning Ciprian Tatarusanu to the bench - while Fikayo Tomori is also fit and firing after being left out of the first leg as a precaution.
Malick Thiaw could therefore be the unlucky centre-back to miss out as Tomori joins Pierre Kalulu and the returning Simon Kjaer at the back, while Alexis Saelemaekers and Theo Hernandez ought to line up out wide.
Rade Krunic is back from a domestic ban and should partner Sandro Tonali in the middle, forcing ex-Arsenal product Ismael Bennacer out of the side, while star attacker Rafael Leao also served a Serie A suspension at the weekend and should now replace Ante Rebic.
Barring a quicker-than-expected recovery for Diaz, Charles De Ketelaere could be given the nod in the final third alongside Leao and Olivier Giroud, who can expect a particularly hostile welcome in North London.
Giroud's place up top is under no threat, as Zlatan Ibrahimovic is one of four notable absentees from Milan's European squad alongside Sergino Dest, Yacine Adli and Tiemoue Bakayoko.
AC Milan possible starting lineup: Maignan; Kalulu, Kjaer, Tomori; Saelemaekers, Krunic, Tonali, Hernandez; De Ketelaere, Giroud, Leao