The rap mogul is friends with the British drummer but has insisted on nicknaming him Rufus Black because he doesn't think he is "cool" enough to be associated with the 'Mardy Bum' hitmakers so likes to keep their association separate.
He said: "Matt is down with my Dirty Money crew, so whenever he's playing with us, he's Rufus Black.
"It was off the cuff because it is so strange that me and him are friends. Arctic monkeys are so cool, you know? And people look at me as cool maybe as a person, but I don't know if musically they look at me as the underground cool rock 'n' roll thing.
"So I didn't wanna f**k up his image. I didn't wanna f**k up the great thing he's got going on. I didn't wanna even call him by his real name,' You'll be Rufus Black.' "
Diddy would love to get Matt to work on one of his records because he thinks the musician is incredibly talented.
He said: "Maybe he will come into rehearsal and we'll take two or three cuts for him to play on or something. That would be real fly.
"As a drummer he's definitely one of the most soulful I've ever worked with. His pocket reminds me of a James Brown pocket. So funky and soulful. When he plays I actually get goosebumps. He's definitely one of the funkiest drummers out there."