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Regragui is confident that 22-time Moroccan first division champions Wydad AC can go deep into the club competition in February, in what will be just their second appearance after debuting at the tournament in 2017.
The 2022 CAF Champions League winners will enter the FIFA Club World Cup in the second round against AFC affiliates Al-Hilal, the same phase in which they entered and were subsequently eliminated by CONCAF side Pachuca 1-0 after extra-time at their last appearance.
In the now-defunct fifth place play-off match, they were also defeated 3-2 by Japanese outfit Urawa Red Diamonds to finish the 2017 tournament in second-last.
However, Regragui, who coached the Casablanca side from August 2021 to August 2022, claimed that a maiden win against AFC opposition at the tournament could be all they need to get their home Club World Cup campaign off the ground.
"I think the trap game is Al Hilal. If they manage to pass Al Hilal, they can go to the final against Real Madrid. Everything is possible," Regragui told FIFA.com.
A win against the Saudi Arabian outfit would set-up a semi-final with Brazilian side Flamengo, who are also participating for the second time at the Club World Cup after they finished runners-up in 2019.
Under the reigns of his replacement head coach Mehdi Nafti, Regragui is confident that the experienced 'backbone' of the side will be enough to overcome their more highly-fancied opposition.
"Like last season, we have some key players who were at the World Cup [for Morocco]," he said.
"Left-back [Yahya] Attiat Allah, goalkeeper [Reda] Tagnaouti, [and] captain Yahya Jabrane.
"Ayman El Hassouni is very talented and perhaps deserves to do better in his career because he has so many qualities. Maybe we will discover him during this [Club] World Cup. In any case, they have a backbone that was with me last year. They have strengthened well too. The backbone is important".
Regragui also believes that the home support of 'extraordinary' crowds in host cities Rabat and Tangier could help get Wydad AC over the line at the February tournament.
"There will be a great atmosphere. I have had an extraordinary year with this crowd. Casablanca is really a soccer city. It's great for Morocco - especially after the World Cup - to see that there is soccer, that there is a public and that there are beautiful stadiums. It's going to be fantastic for our country."
Watch Wydad Casablanca v Al-Hilal in the second round of the FIFA Club World Cup LIVE from 1:15am (AEDT) on Friday, February 3 on SBS On Demand.