Reports have suggested that Stoke City officials have been in Germany for talks over a deal for Diouf.
The former Manchester United striker has impressed in the Bundesliga since leaving England.
The 25-year-old has entered the final year of his contract at Hannover.
Hannover president Martin Kind told Bild: "We do not need the money. His goals may be more important for us.
"If Stoke offered 20 million euros, then we'd think about it, but I don't think that is realistic."
Hannover's director of sport Dirk Dufner added: "It looks like he'll be staying with us.
"He is a good boy and an absolute professional, who has exerted no pressure on the club."