UFC welterweight Nick Diaz and the Nevada State Athletic Commission are currently in settlement talks that could drastically reduce the five-year suspension Diaz received in September.
Diaz, 32, confirmed the discussions Tuesday via social media.
The NSAC banned Diaz for five years during a disciplinary hearing Sept. 14, after he failed a drug test taken Jan. 31. It was the third time Diaz has tested positive for marijuana in the state of Nevada.
The five-year suspension, which could very well end Diaz's UFC career, was met with enormous public outrage. Conditions of the potential settlement have not been disclosed, though one source told ESPN.com it's possible Diaz could return as early as next year.
Diaz provided an update on the settlement talks via Instagram.
NSAC chairman Francisco Aguilar also confirmed the settlement talks to ESPN.com. The NSAC has its regularly scheduled public meeting Thursday. Diaz's potential settlement, while ongoing, will not be addressed in that meeting.
"As a reminder to the general public, the Nick Diaz disciplinary matter will not be on the agenda at the regularly scheduled meeting of the NSAC on Thursday in Las Vegas," Aguilar said in a statement. "Settlement discussions between the NSAC and Mr. Diaz and his counsel are ongoing."
Diaz (26-9) appeared before the commission during that September hearing but declined to answer any questions related to his failed drug test. The NSAC discussed banning Diaz for life before ultimately settling on five years and a $165,000 fine.
Diaz fought Anderson Silva in a non-title middleweight fight at UFC 183 on Jan. 31 in Las Vegas. The circumstances surrounding his failed test were unique in that Diaz passed two drug tests administered that night but failed a third.
The two tests Diaz passed were analyzed by a World Anti-Doping Agency-accredited lab in Salt Lake City. The third, failed test was analyzed by QUEST Diagnostics in Las Vegas. During the hearing, Aguilar said the NSAC was obligated to respect the failed test, despite the two clean ones.
Diaz tested positive for marijuana metabolites in 2007 and 2012. He received suspensions of six months and one year, respectively, for the failed tests. In 2012, Diaz unsuccessfully challenged his suspension, arguing inactive metabolites of marijuana are not technically banned in competition under Nevada statutes. He ultimately served the suspension and returned to an immediate welterweight title shot against Georges St-Pierre in 2013, which he lost via unanimous decision.
A former Strikeforce champion, Diaz has made just three appearances since 2012. He is officially 0-2 during that time. A third loss to Silva on Jan. 31 was changed to a no-contest after Silva tested positive for multiple anabolic steroids. Silva received a one-year suspension from the NSAC.