Following Renault's decision to fast-track its latest power unit upgrade but with only two new-spec engines available - one for itself and one for Red Bull - because of a shortage of components, the Milton Keynes outfit will have to decide who will be the lucky recipient of the new engine.
For Lauda, there is no doubt that the always smiling Australian should be awarded the new power.
"For me, it's very clear," Lauda told German publication Auto, Motor und Sport. "Red Bull should give the new engine to Daniel.
"I do admit however that the future lay with Max Verstappen because what he has accomplished at just 18-years-old is impressive.
"Max had an incredible win in Spain. But in spite of all the buzz surrounding his success, you cannot deny that Ricciardo still remains the best all-round driver at Red Bull.
"He also has more experience which could prove very important at Monaco."