The match will be played at Estadio Defensores del Chaco in Asuncion, Paraguay.
Match preview
Having been defeated in each of their most recent three friendlies against their South Amerian neighbours Peru, Colombia and Chile, Paraguay will be hoping to return to winning ways against Nicaragua on Sunday.
Despite missing out on qualifying for the World Cup for the third successive time, Los Guaraníes have held onto their head coach Guillermo Barros Schelotto, who only managed to gain four points from six qualifying games after being appointed in October 2021.
As such, the 50-year-old is under pressure to deliver some positive results ahead of next summer's next edition of the Copa America, which is to be held in the United States for the second time.
In theory, Paraguay's forthcoming opponents could join them at the tournament given that it is being co-hosted by CONCACAF, with six guest CONCACAF participants set to compete for the trophy.
However, Nicaragua's hopes of qualifying for the Copa America for the first time in their history were handed a major blow by being demoted to League B of CONCACAF's Nations League, after being found guilty of fielding an ineligible player in eight different matches.
In the more immediate term, La Azul y Blanco have also been thrown out of the Gold Cup, which begins later this month when USA take on Jamaica on June 24. Trinidad and Tobago will join those two nations in Group A at Nicaragua's expense.
The news comes as a major blow after they missed out on qualifying for the Gold Cup two years ago, and it will almost certainly have a negative impact on their world ranking, which currently sits at 140th in FIFA's system.
Having already been defeated by Panama and Uruguay within the past week, head coach Marco Antonio Figueroa will be determined for his players to provide their home country with some positivity in the form of causing an upset in Paraguay on Sunday.
Paraguay friendly form:
L
Paraguay form (all competitions):
W
W
D
L
L
L
Nicaragua friendly form:
L
Nicaragua form (all competitions):
L
W
L
W
D
L
Team News
There were not many surprises in terms of the Paraguayan squad that Scheletto named, with captain Gustavo Gomez representing the most experienced member of the squad on 65 caps ahead of Sunday's friendly.
Brighton & Hove Albion midfielder Julio Enciso will reach double figures in terms of appearances for his country should he be involved in Asuncion, but the 19-year-old is yet to find the back of the net in international colours.
Nicaragua, meanwhile, handed Jacob Montes his first international cap during the 3-2 defeat to Panama last week, and the Botafogo midfielder will be hoping for a start this time around.
In light of the news that his team will not be allowed to compete at the forthcoming Gold Cup, Figueroa may name a more experimental side than perhaps anticipated, but captain Juan Barrera may earn a start in pursuit of his 25th international goal.
Paraguay possible starting lineup:
Silva; R Rojas, Balbuena, G Gomez, Alonso; D Gomez, M Rojas; Almiron, Enciso, Villasanti; Avalos
Nicaragua possible starting lineup:
Lopez; N Rodriguez, Reyes, Fletes, J Rodriguez; Montes, Serapio, Medina; Hernandez, Barrera, Talavera
We say: Paraguay 3-1 Nicaragua
Paraguay's stock has significantly fallen in recent years, but we expect them to be highly motivated to return to winning ways after losing their last three matches.
The visitors are likely to be demotivated after already losing two friendlies within the past week, especially having been removed from the Gold Cup, which these friendlies were arranged in preparation for.