The north London outfit have been constantly linked with a move for the 25-year-old, who is believed to have a £3.5 million release clause written into his contract.
Diame has been one of the Hammers' star performers so far this term, notching two goals – including one against Arsenal – in his 18 appearances for Sam Allardyce's side.
|WENGER RUES POOR START
|14/1||Brighton are 14/1 with bet365 to beat Arsenal 1-0 in the FA Cup this weekend
And Wenger has fuelled talk of a move for the powerful Senegalese midfielder, telling reporters: "He has a great presence in the games, I have seen him have a big impact."
Arsenal lost 2-1 to Chelsea on Sunday afternoon, contributing to a haul of just one point from three games that leaves them seven points behind top four rivals Tottenham and level with Liverpool and West Brom on 34 points.
There is better news for the Gunners though, with Goal.com exclusively revealing that Mikel Arteta is set for a return to the first-team this week.