UFC star Nate Diaz emphatically insisted he has not quit mixed martial arts by declaring "I'm never going to retire."

Diaz called for a rematch after he was stopped at the end of the third round in his bout against Jorge Masvidal at UFC 244 last weekend, due to a cut over his right eye.

The 34-year-old this week appeared to suggest his fighting days were over when he posted on Instagram: "F*** a rematch this s*** was over before it started. I'm goin [sic] on out on tour. Peace out fight game."

Diaz has now set the record straight, vowing that he is not finished yet.

"Who said I was retired? I'll fight tonight," the American told ESPN.

"I'll fight forever. I'm never going to retire, that's for sure."

BMF champion Masvidal had posted a picture of himself and Diaz in the Octagon on Saturday and written: "Heard it might be true, if so it was fun sharing the #cage with you.

"Whenever you get that itch again, let's run it back. I'm gonna go make this paper in the mean time."