Diddy -- D.A. REJECTS Felony Case

Diddy just got a huge break ... TMZ has learned the L.A. County D.A. has rejected the case, meaning he will not be charged with a felony, but Diddy is not out of the woods just yet.

We've learned the case will be referred to the L.A. City Attorney, which could file misdemeanor charges against the mogul.

TMZ broke the story, Diddy was arrested last month after getting into a fight with his son's UCLA football strength and conditioning coach. UCLA cops arrested him for felony aggravated assault and making terrorist threats.

The D.A. disposed of the case in a day, meaning it was a weak felony charge. Now the City Attorney must decide if it warrants prosecution for a lesser offense, most likely misdemeanor assault.