As he continues to try to strengthen before that start of the upcoming season, McDermott has been told he must slash the wage bill in order to add to the squad.
And with Diouf on a reported £12,000-a-week, he was thought to be to earmarked for an Elland Road exit, but McDermott insisted there is no truth in such reports.
"Whatever suggestions there are about him didn't come from me," McDermott told The Sun.
"All I know is he's got to get himself training and get fit.
"He hasn't trained yet. He got himself injured then got a nasty infection, but he's desperate to get back."
Diouf has 18 months left on his contract, and has attracted interested from QPR, as well as Qatar.