The Senegal international has been one of the Hammers’ top performers in the Premier League this season after moving to Upton Park from Wigan Athletic in the summer.
Diamé is reported to have a £3.5m release clause in his contract, prompting interest from a host of top-flight clubs, including the Gunners.
However, Allardyce revealed that there has been no offer from Arsène Wenger, with the West Ham boss unsure whether Arsenal could accommodate Diamé in their side.
“You are always worried about losing players but we have not had a bid from Arsenal for Diamé. I can’t see where he would fit into their side,” said Allardyce.
Newcastle United have also been linked with a move for West Ham’s James Tomkins, but Allardyce underlined his desire to strengthen – and not sell – this month, with his Hammers squad already stretched.
“We have never been in a position to sell anybody and we don’t want to. We want to increase the size of the squad not decrease it and sell anybody,” he added.
“But you never know what happens in this window because if someone offers you an unbelievable amount of money for one of your players then the owners look at that and say that is too much to turn down, not that that has happened at the moment.
“But the most important thing for me is players coming, in not going out.”
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