Nadal had to fight back from two sets down in their previous meeting in Melbourne in January to clinch a men's record 21st Grand Slam title.
A second triumph at Melbourne Park for 2009 champion Nadal will break a three-way tie for the most major titles in the men's game.
Only two wins separate Nadal and a men's record 21st Grand Slam title.
Nadal drew within two wins of a record 21st Grand Slam title on Tuesday after claiming a five-set thriller against Denis Shapovalov.
The dressing room might not be the most welcoming place for Djokovic either, with some players resentful that he is not vaccinated.
Djokovic spent Orthodox Christmas in Australian immigration detention on Friday as his lawyers fought a government decision to remove him from the country.
Novak Djokovic will not be able to enter Australia to defend his Australian Open title unless he is fully vaccinated for COVID-19.
Nadal said he still does not know when he will play tennis again as he works to complete his recovery from a recurring foot injury that cut short his 2021 season.
Djokovic has played some of the best tennis of his life in 2020 but he regrets the failure to win either the U.S. Open or the French Open.
Djokovic has decided not to enter the Paris Masters because he has no points to win at the Nov. 2-8 event as he bids to retain the world number one spot come end of season.
Australian tennis maverick Nick Kyrgios invited Rafael Nadal to take part in a cosy video chat on Sunday despite their stormy on-court relationship.
Rafael Nadal on Monday expressed his frustration that tennis players remain unable to practise due to the coronavirus pandemic, while Roger Federer revealed he was happy with his recovery from knee surgery.
World number two Rafael Nadal captured his first ATP Tour title of 2020, easily defeating unseeded Taylor Fritz in straight sets, 6-3, 6-2, in the final of the Mexico Open on Saturday.
Nadal begins his French Open campaign on Monday, seeking his 12th title and 18th Grand Slam.
"I am going to be there with time enough, as always," said 32-year-old Nadal, who wants to capture a 12th trophy in Paris.
World number one Novak Djokovic saved two match points against former US Open champion Juan Martin Del Potro to advance to the semi-finals of the Italian Open in a three-set Roman thriller on Friday as defending champion Rafael Nadal swept through without
Austria’s Dominic Thiem thumped Russia’s Daniil Medvedev 6-4, 6-0 on Sunday to capture the Barcelona Open title.
Rafael Nadal showed no mercy towards an emotional David Ferrer as he eased into the quarter-finals of the Barcelona Open on Thursday, describing his compatriot who is winding down his career as a "pleasure to watch".
The world No. 2 faces Nick Kyrgios in the round of 16 after the Australian defeated Andreas Seppi of Italy 6-3 7-5.
Rafael Nadal's Spain will host defending champions Croatia in the Davis Cup finals with the 17-time major winner set to be the only member of the sport's big four taking part in the controversially rebooted tournament.