Diaz was forced to stop fighting by the cageside doctor before the final two rounds of his BMF title showdown on Saturday night could be contested after he suffered two deep cuts above his eye.
Both fighters signalled their desire for a rematch after what they felt was a premature end to a thrilling fight, but the Californian now appears to have gone back on his word and has suggested that he may be hanging up his gloves.
Diaz wrote on Instagram: “F*** a rematch this s**t was over before it started. I’m going on out on tour. Peace out fight game.”
His latest post comes only a week after he had spoken of his desire to keep going in UFC, saying: “I’ll fight forever. I’m never going to retire that’s for sure.”
Diaz is currently serving a 90-day medical suspension after requiring some 25 stitches for the blows he received above and below his eye in New York.
The Californian, who was totally outfought by in the three rounds that were completed at Madison Square Garden, would be set for another enormous payday if he was to rematch Masvidal, even if it is not an immediate priority for UFC president Dana White.
Retirement for Diaz would also signal the end of any hopes for a trilogy fight against Conor McGregor.
Diaz was the first man to defeat the Irishman at UFC 196 in March 2016, but the rematch then went the way of McGregor at UFC 202 on the judges scorecards.