The 29-year-old has signed a five-year contract with the Italian side.
A statement on the club’s official website read: “Bologna have reached an agreement with Alessandro Diamanti to prolong his contract until June 30, 2017.”
Diamanti impressed for Bologna in the Serie A last season.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.