Fan favourite Diaz lost his comeback fight against his fellow American at UFC 266 in September 16 years after winning their first fight.
And while the Stockton slugger gave a good account of himself after ‘such a huge layoff’, White admits he still doesn’t want to see him fight again.
The pair have had a volatile relationship at times, with White famously accusing Diaz of cracking ‘under the pressure’ after he failed to show up at multiple press conferences to promote his then-upcoming fight with Georges St-Pierre.
However, White also revealed he has ‘nothing but respect for Nick’, apparently burying any lingering animosity between them.
Speaking to ESPN, he said: “I was very impressed with his comeback in September.
“I had conversations with Robbie Lawler [who beat Diaz] and he had nothing but respect for him and how he fought.
“But regardless of how good Diaz looked, what he did after such a huge layoff, I don’t think Nick should fight.
“He’s a grown man, he can do whatever he wants. But I just don’t think Nick does this because he loves it. He does it because he has to do it.
“People always ask me, ‘what’s the key to success?’ It’s all about being happy and doing what you love.
“When I talk to people who sit in bumper-to-bumper traffic for a job they hate, that’s what I feel like with Nick Diaz.
“When he’s getting ready to fight, he’s in bumper-to-bumper traffic. It’s actually fascinating.
“But yeah, for a guy who had been off as long as he had been, nothing but respect for Nick.”
But while White believes that Diaz should call time on his career, the same can’t be said for his brother Nate Diaz.
“There’s no difference whatsoever [in matchmaking him],” he added.
“Every time we put on a fight, first and foremost it needs to be a fight the fans want to see.
“The other thing, depending how much they make, you want a big fight. A good fight. A fight that matters. A fight that’s going to create some hype, energy — and sell.
“But that’s always the same, if you have 10 fights or no fights [left on your contract]. If we didn’t want to extend Nate Diaz, we’d wait until the deal was up and that’s it.
“We’ve had guys fight their contracts out, and Nate might be one of them. Our heavyweight champion is about to fight his contract out.
“This is a tricky thing, because I don’t want to sit here and act like Nate Diaz turned this fight down or turned that fight down.
“I don’t want to get into all that. I say this to you guys all the time: I’m in the fight business. By contract, I have to offer these guys three fights per year, and they can say yes or no.
“We’re working it out. The trilogy with McGregor is always there. That fight could happen. We could make that fight.”