In this paper we study the algebraic properties of a new integrable differential-difference equation. This equation can be seen as a deformation of the modified Narita-Itoh-Bogoyavlensky equation and has the Kaup-Kupershmidt equation in its continuous limit. Using its Lax representation we explicitly construct a recursion operator for this equation and prove that it is a Nijenhuis operator. Moreover, we present the bi-Hamiltonian structures for this new equation.