Phenotyping cost of traits can prevent accurate genetic evaluation. We developed a strategy that selects an optimised subset of animals to phenotype based on pedigree relationship, prior information and diversity to maximise genetic gain under inbreeding constraints.We simulated a two-stage two-traits selection scenario for a small population of 10 paternal half-sib families of size 10. One trait was phenotyped for all animals and the second trait was phenotyped on only 20 selection candidates based on a prior decision, either made based on optimized  strategy or based on breeding values at stage 1. After phenotyping, the second stage selection of animals as parents for the next generation was based on optimum contributions. The optimised strategy was useful when there was limited prior information about the Mendelian sampling term of predicted breeding values. When parents of selection candidates have not been phenotyped, optimised strategy did not provide any advantage over truncation selection. However, when sires or both parents have been phenotyped, optimised strategy resulted in higher genetic gain for similar level of inbreeding. We conclude that an optimized strategy has potential long term benefits in breeding programs but more work is needed to investigate the conditions under which benefits are largest.