Nonlinear optical coupling between two single-mode fibers terminated coaxially in a nematic liquid crystal (NLC) was explored for the first time. Light-induced reorientation of nematic molecules can result in the stable self-collimation of light transmitted through the gap between fibers. Thus, high coupling efficiency can be achieved despite large fiber spacing. We demonstrated a coupling efficiency of up to ∼0.7, achieved with spacing equal to four diffraction lengths. This feature opens up possibilities for the development of novel in-line fiber-optic elements based on NLCs. For instance, a polarization controller was proposed and considered.