The Daily Express says Leicester are bidding to become the first Premier League club to make a move for Diallo.
The Foxes have been paying close attention to the Senegalese international, who has already scored seven goals this season.
Diallo, 24, is the joint second-highest scorer in Ligue 1 this season and The Foxes have been impressed by the reports they have received.
He is enjoying the best season of his career in the French top-flight following on from netting 26 times last term to win a place in the Ligue 2 team of the season.
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