Kid Cudi has signed a record deal with Universal Motown - just one month after he contemplated retiring from the hip-hop industry altogether.

Last month Cudi contemplated hanging up his mic after the forthcoming release of his debut album, 'Man on the Moon: The Guardians'.

Just days later, he appeared to have had a change of heart, telling fans at the Texas' South by Southwest festival the rap game "needed" him to continue with his musical career.

He has now put to rest his plans to quit - by inking a deal with Universal Motown and announcing the launch of his own label Dream On.

Universal Motown will distribute Dream On - co-founded by Kid Cudi and his partners Emile and Plain Pat - in conjunction with rapper Kanye West's G.O.O.D. Music imprint.

And label bosses at Universal Motown are confident Kid Cudi will be an asset to the firm's musical roster.

President Sylvia Rhone tells AllHipHop.com, "Kid Cudi is at the vanguard of a game-changing new generation of artists.

"He is a breath of fresh air - a dynamic and important new voice, not only in the next phase of hip-hop, but as a groundbreaking trendsetter who represents the future. I am thrilled to welcome Kid Cudi into the Universal Motown family."