The Senegal international striker, whose current deal expires in June 2014, has scored 13 goals in 28 appearances this season.
Borussia Dortmund are reported to be interested in the former Manchester United player, who left Old Trafford for Germany in January 2012.
Club and player have returned to the negotiating table after Diouf rejected an earlier offer in an attempt to thrash out an agreement, but Hannover chairman Martin Kind is not expecting the 25-year-old to put pen to paper soon.
"The talks we had have proved there will be no new contract agreement any time soon," Kind told Deutsche Presseagentur.
"We are still far off of their expectation.
"They (Diouf & his agent) are going to consider their options. This is the last impression I have got from this (meeting)."