The 20-year-old is currently being linked with a move away from Lisbon after establishing himself as a key part of Ruben Amorim's side.
Diomande has been a mainstay in the Sporting lineup this season, starting the club's opening 15 league games before he recently headed off the Africa Cup of Nations.
Despite being under contract until June 2027, the former Midtjylland player is attracting interest from Newcastle, Arsenal and Chelsea.
According to The Mirror, Newcastle are preparing to increase their scouting efforts over the next month as they look to win the race to secure Diomande's signature.
The report indicates that the Magpies will keep a close eye on the Ivory Coast international at the tournament which is taking place in his home country.
Diomande earned his fourth cap in Saturday's 2-0 win over Guinea-Bissau in the opening match of the tournament, and he is expected to be involved in his country's next two group games against Nigeria and Equatorial Guinea.
The centre-back, who is said to be valued at £70m, has also emerged as a potential target for Spanish giants Real Madrid.
Meanwhile, Saudi Arabian club Al Ettifaq are reportedly interested in signing Chelsea defender Malang Sarr before the end of the month.
Steven Gerrard, who was appointed Al Ettifaq manager in the summer, made a number of additions to his squad in the previous transfer window.
The former Liverpool midfielder recruited the likes of Demarai Gray, Georginio Wijnaldum and Jordan Henderson, although the latter has recently been linked with a move away from the Saudi Pro League club.
Despite bolstering his side in the summer, Gerrard is on the lookout for further reinforcements, having seen his team go nine competitive matches without a win.
According to football.london, Gerrard is considering a move for Sarr, who has failed to make a single matchday squad for Chelsea this season.
With Sarr not regarded as a part of Mauricio Pochettino's plans, Chelsea are keen to move the defender on during the current transfer window.
The Frenchman spent last season on loan at Monaco, but he returned to Stamford Bridge after the Ligue 1 side decided against exercising their option to purchase the 24-year-old.
While Al Ettifaq have emerged as a potential destination, Sarr has been mooted as a potential target for reigning Serie A champions Napoli.
In addition to Sarr, Napoli are reportedly set to rival Juventus for the signature of Nottingham Forest midfielder Orel Mangala.
The 25-year-old could leave the City Ground this month after falling out of favour under new Forest boss Nuno Espirito Santo.
Mangala started 15 of the club's first 17 Premier League games, before Steve Cooper was relieved of his duties following a 2-0 defeat to Tottenham Hotspur in December.
In contrast to the trust shown in him by Cooper, Mangala has started just one of Espirito Santo's four competitive games in charge.
According to journalist Florian Plettenburg, Juventus and Napoli are keen to bring the Belgium international to Serie A.
Juventus have recently spoken with the player's representatives, as they look to sign Mangala on a six-month loan deal with an option to buy.
While Massimiliano Allegri will have the final say in Juventus' pursuit, Napoli have submitted an offer over the last few days.
The midfielder is also on the radar of Turkish giants Galatasaray, who have already seen their initial proposal rejected by Forest.