Diaz is reportedly dating Rodriguez, popularly known as "A-Rod", which has infuriated Hudson, who was in a relationship with him from May to December 2009.
Hudson believes that Diaz is trying to seek revenge for hooking up with Justin Timberlake just days after the pair split in early 2007.
"Kate thinks it's payback, pure and simple," usmagazine quoted an insider as saying.
A friend of Diaz added: "Cameron was actually in a serious long-term relationship with Justin. She thinks it's a joke Kate would be mad. Kate is only upset because she hates being single."
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Kate Hudson, Cameron Diaz at loggerheads!
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