The 26-year-old enjoyed a productive 2021-22 campaign in Ligue 1, scoring 11 goals and registering one assist in 31 league appearances, of which just 16 were starts.
With the help of Diallo, Strasbourg achieved an impressive sixth-placed finish, missing out on European football by just three points.
However, the French outfit could be about to lose its Senegalese striker this summer according to ESPN, who report that Diallo is the subject of interest from a number of Premier League clubs.
The report suggests that newly-promoted Forest are involved in the battle to acquire the striker's signature this summer, with West Ham United, Brighton & Hove Albion and Leicester City also in the race, along with Bundesliga side Borussia Monchengladbach.
Diallo is said to dream of playing in the Premier League, where Forest will compete next season, after ending their 23-year wait for a return to the top flight following their 1-0 win over Huddersfield Town in the Championship playoff final at Wembley back in May.
Reds boss Steve Cooper is eager to bring in attacking reinforcements this summer, with Lewis Grabban set to leave the club upon the expiration of his contract at the end of June, and with Keinan Davis returning to parent club Aston Villa following the end of his loan spell at the City Ground.
Chelsea's in-demand striker Armando Broja has also been linked, although several Premier League sides are also said to be chasing the Albanian after an impressive loan spell with Southampton in the 2021-22 campaign.