The former Manchester United striker’s current contract is due to expire next summer but Hannover are in talks to tie down Diouf to a new long-term contract.
Hannover boss Mirko Slomka told Sport1: “Dirk Dufner [General manager] is busy with those negotiations.
“He is trying to keep Mame Biram Diouf at our club for longer than the end of the season.
“I think we have strong arguments to convince him to sign a new long-term contract at our club. I am confident.”
Diouf was strongly linked with a move to Premier League side Stoke City this summer.