The 22-year-old has established himself as one of the most highly rated young defenders in Europe at Sporting, but muscle injuries hampered his progress in 2025-26.
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Diomande made 31 appearances across all competitions, starting just 15 of his 17 Liga Portugal games as Sporting finished second.
According to Fabrizio Romano, Premier League Nottingham Forest are now advancing in talks to sign the Ivory Coast international.
Forest are in talks with both Sporting and Diomande’s representatives and are pushing to get the signing over the line as soon as possible.