In this report, ab initio techniques in Density Functional Theory, (DFT) are used to calculate the vacancy-mediated self-diffusion coefficient and impurity diffusion coefficient of silver (Ag) in pure fcc nickel (Ni). Prediction of diffusion coefficients is one of the most stringent tests of the ability of DFT calculations, because of the complex interplay of lattice constant, vacancy formation enthalpy, solute-vacancy binding enthalpy, and vibrational frequencies. The Ag diffusion and Ni self-diffusion coefficients calculated in the present work compare very favorably to previous experimental self-diffusion and Ag diffusion data.