B.J. Penn's (Pictures) camp informed Sherdog.com that the 28-year-old Hawaiian would not face Diego Sanchez (Pictures) in August, though the possibility wasn't ruled out for a later date.

On Tuesday, Sherdog.com cited a source close to Penn and Sanchez who said a fight had been agreed upon for Aug. 25 in Las Vegas and would be featured on the undercard of the UFC heavyweight title fight between Randy Couture (Pictures) and Gabriel Gonzaga (Pictures).

Penn's camp said the fight with Sanchez had not been offered by the UFC for August, and indicated many options are being discussed as far the fighter's future inside the octagon, which includes the possibility of him remaining at lightweight.

Penn (11-4-1) expects to release news of his future via his Web site, BJPenn.com, though no date was given as to when he would make a statement.