The Senegalese forward was banished to the under-23’s for the first-half of the last campaign by Roland Koeman before his impressive outings for the Everton reserves caught the attention of Hull City whom he joined on loan in January and scored five goals in 19 appearances.
LiverpoolEcho reports however that the 27-year-old still has no future with the Toffees as he does feature in Koeman’s plans.
The claims are supported further by the expected arrival of Sandro Ramirez from Malaga as this will push the former Lokomotiv Moscow man further down the pecking order at Goodison Park.
Hull were offered the chance to make the move for the Ouakam-born permanent but have opted to pass the opportunity after their relegation to the Championship.
Niasse joined Everton in a £13.5 million deal from Moscow in February 2016 but has struggled to make any impact.
It has also been speculated that former Tigers boss Marco Silva is considering a reunion with Niasse after his appointment as Watford's manager.