The actress was asked by PrideSource in an interview published today if she could see herself involved with another woman: 'That's not at all what I said. That's not what I was saying. That's what people are (saying). What I'm saying is that I can appreciate the beauty of another woman.'
Diaz adds: 'I've said this forever: I think women's bodies are beautiful - all shapes, all sizes. Every part of a woman is beautiful and that's something that we've celebrated culturally throughout history.'
Speaking to UK’s Glamour magazine last month to promote her new film The Other Woman, Diaz touched upon her views on sexuality.
"I think women are beautiful - absolutely beautiful’ she said. ‘I think that all women have been sexually attracted to another woman at some point. It's natural to have a connectivity and an appreciation for the beauty of other women.’
This led to buzz that the actress is bisexual.
Diaz now says: 'What I really think is a problem is that for some reason everybody needs to label. There needs to be a label for something, and you have to qualify it with a label. If we didn't put these labels on ourselves, I think we would probably live in a much better society. We would just let people be who they are and we wouldn't have to define them.'
She makes clear she does not like labels.
'People get uncomfortable (when you don't),' she says. 'I'm not saying it's a bad thing, but it's a beautiful thing that we can appreciate beauty in other women. I think that's amazing. If they're confident in themselves and know who they are, heterosexual men can look at another heterosexual man and go, "Yeah, he's pretty hot. He's a sexy man."'
'Because we have to label it, because we make people choose who they want to be, people aren't happy.'