Sela tumbled will be looking to continue his good run of form in England after a disappointing opening round defeat against local favourite Elias Ymer at the French Open.
The Israeli, who is 33 and ranked 104 in the ATP, lost the opening set to a tie-break before going down 6-3, 6-1.
Nottingham Open Tournament director Paul Hutchins said: “We are excited to welcome back two-time winner Dudi Sela for this year’s tournament.
"He had a fantastic run to last year’s final and it is great he is coming back to defend his title.”
Diego Schwartzman cruised into the second round in Paris after eliminating Calvin Hemery in straight sets.
Seeded 11, Schwartzman romped to a 6-1, 6-3, 6-1 victory in the Men’s Singles to set up a clash against Adam Pavlasek.
Noah Rubin’s debut in Paris was short-lived as he went down in straight sets against the big-serving John Isner.
The all-American clash was played over two days following a rain interruption at Roland Garros, and the 22-year-old from Long Island, New York went down fighting, losing the second and third sets on tie-breaks.
Giving away a big height advantage against the 6ft 10” Isner, Rubin managed two only two break points, as Isner rained down 28 aces.
Ranked 204 in the world, Rubin had qualified for the second grand slam tournament of the year by earning a wild card, as a result of his efforts on the Challenger circuit.
Camila Giorgi, 26, progressed in the Ladies Singles after beating Grace Min of the USA 6-3, 6-2. Ranked 57, Giorgi will play Mariana Duque-Marino in round two.