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Woodley made his professional boxing debut against the YouTuber-turned-boxer in August in Cleveland, with Paul emerging victorious via split decision in the eight-rounder.
It moved him up to 4-0 in his career and was comfortably the biggest and most noteworthy win to date.
But Danis, who is Conor McGregor's teammate and has had beef with Paul, says Woodley was not contractually allowed to score the knockout.
"Tyron Woodley, from what I heard, had it in the contract that he was not allowed to knock out Jake Paul," Danis said on the MMA Hour.
"I swear on anything, when he was against the ropes, I swear, that’s why when Jake Paul was against the ropes, Tyron Woodley didn’t hit him.
"I’m telling you right now. It was in his contract where it said you’re not allowed to knock him out."
Two judges scored the fight 77-75 and 78-74 in favour of Paul, with the other calling it 77-75 for former UFC welterweight champion Woodley.
Paul landed more punches - 71 to 52 - but Woodley, who had lost his last four UFC fights going into the bout, caught the 24-year-old with a wicked left hook in the fourth round.
It rocked Paul, who stumbled back into the ropes, but he was able to eat the punch and recover from the strike.
Paul had told Woodley he would give him a rematch if he got a "I love Jake Paul" tattoo.
The 39-year-old followed through with the bet and got the ink done on his finger, before calling out 'the Problem Child'.
Tyron Woodley has now got a Jake Paul tattoo and called him out for a rematch… pic.twitter.com/ps67Xb3njz— Michael Benson (@MichaelBensonn) September 27, 2021
However, it appears as though Paul will instead be locking horns with Tommy Fury next as the two finally settle their rivalry inside the squared circle.