We have studied the squeezing properties of a field and atom in a two-
level system. The influence of nonlinear interactions (i.e. the arbitr
ary intensity-dependent coupling of a single-mode field to a single tw
o-level atom, the nonlinear interaction of the field with a nonlinear
Kerr-like medium) on the squeezing is discussed in detail in the rotat
ing wave approximation (RWA). We show numerically that the effect of t
he virtual-photon field suppresses dipole squeezing predicted in the R
WA and leads to an increased squeeze revival period; the suppressed sq
ueezing can be revived due to the presence of the nonlinear Kerr-like
medium.