After coming up short in his title challenge against Ben Henderson last month, UFC lightweight Nate Diaz will be returning to the Octagon at UFC on Fox 7: Henderson vs. Melendez (April 20th, San Jose), where he’ll face former Strikeforce champ Josh Thomson; CSNBayArea broke the news yesterday.

Thomson hasn’t competed in the UFC since his 2-1 stint for the promotion in 2003-2004, which ended in an unfortunate/incredible highlight-reel knockout against Yves Edwards. Since then, “The Punk” has spent most of his career fighting for Strikeforce, where he built an entertaining rivalry against Diaz’s training partner (and UFC on FOX 7 title challenger) Gilbert Melendez. Thomson briefly held Strikeforce’s lightweight title after winning a decision against Melendez in June 2008, and has picked up wins over Pat Healy, Gesias Cavalcante, and KJ Noons since then. His most recent appearance resulted in a split-decision loss to Melendez during their rubber-match last May.