Diouf joined the Championship side on a short-term deal in the summer, committing to the Whites until January.
The 31-year-old Senegalese has impressed at the Yorkshire club but his agent, Willie McKay, said earlier this month an extension of his contract was yet to be agreed.
However, McKay is now hopeful over a new deal after speaking with the club's chief executive Shaun Harvey.
He told the Daily Mail: "We have spoken to the chief executive Shaun Harvey and we hope to have something sorted soon."
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