After negotiating with the UFC for his new contract, there was speculation that Melendez may sign with Bellator. In the process, Melendez also got an offer from World Series of Fighting. He then agreed to sign with Bellator, but the UFC had the right to match their offer. Melendez ultimately re-signed with the UFC after he was given the opportunity to serve as a coach on , opposite UFC Lightweight Champion Anthony Pettis, the two would face each other at UFC 181 on December 6, 2014. He lost the fight via guillotine choke in the second round.