Sean 'Diddy' Combs has dismissed stories that he's romancing actress Cameron Diaz.

The rapper and business mogul was seen getting cosy with the 'What Happens in Vegas' star at the MTV Movie Awards on Saturday. Last month the pair were seen out together at a hotspot in New York.

But Combs has denied that the two are more than friends.

"It is ridiculous that two celebrities of the opposite sex can't just hang out with a group of friends without it being reported as more than that," he told New York Daily News.

"We are just friends."

Diaz, whose last long-term relationship (with Justin Timberlake), ended last year, has been dating actively.