The 19-year-old made eight appearances for Manchester United after joining on a big-money deal from Italian top flight club Atalanta last summer.
The arrival of Jadon Sancho, though, has pushed him further down the pecking order and the Red Devils are considering loaning him out for the season.
Several clubs in the Premier League, the Championship, Ligue 1 and the Bundesliga are said to have made enquiries for the Ivory Coast international this summer.
And it appears Championship club Sheffield United are among the clubs interested in acquiring the services of the highly-rated winger from Manchester United.
The 19-year-old has been on Sheffield United’s list of transfer targets since last season and a move to Bramall Lane could be a possibility for him.
Apart from Sheffield United, Premier League club Crystal Palace have been credited with an interest in signing Diallo on loan from the Red Devils.
Swiss giants Basel are in the mix for the teenager, who has also been the subject of interest from clubs in the Bundesliga and Ligue 1.