In an interview for Tatame, Ataíde Jr (Thiago's coach at Constrictor Team) says that Paulo's future with the UFC is uncertain, but they are hoping that he is given one more chance in an undercard fight.
Paulo is 3-3 in the UFC with a KO win against Koscheck, a Sub win against Mike Swick and a Decision win against Volkmann. He has 3 decision losses to Fitch, Kampmann and now Diego Sanchez.
Thiago is an active special operations police officer in Brazil. It's an extremely dangerous job which is physically and mentally demanding. His coach believes Paulo doesn't necessarily have to quit his job, but he hints that he will only be successful in the octagon if he becomes a full time fighter.
This is what Ataíde had to say:
"What saved the night was that Fight of The Night bonus, but I think he still has a chance to come back and fight again. Paulo had a great 1st round, but started to slow down after round 2, while Diego got stronger."
"We'll go back to Brazil now to regroup and watch the fight so we can figure out what went wrong... We can't understand why Paulo does so well in practice but can't perform to at his best during his fights. The strategy was to not be under Diego and attack heavily on the feet, but we couldn't do that."
"We have huge support from the Militar Police, but I think Thiago is lacking a bit of focus and dedication in his training. In Brazil it's extremely hard to find sponsorship, but we will have to increase his training routine."
If the UFC gives him another chance, it will probably be in the undercard. Since he joined the org he only fought tough opponents, that's why I think they'll give him another chance. The UFC usually extends their fighter's contracts before they get to their last fight, so let's see what they will do."
This last bit of the interview is a bit confusing. But what I understand is that this fight with Diego was Paulo Thiago's last in his contract and the UFC hasn't made him an extension offer yet. Hmmm... If that's the case, it doesn't look good for Paulo!