Manager Sam Allardyce admits West Ham have made little progress in trying to renegotiate the terms of Mohamed Diame's contract as the Senegal midfielder continues to be linked with a £3.5million move to Arsenal.

Diame, 25, only joined the Hammers in the summer from Wigan, but is understood to have a £3.5million buy-out clause. While there has been no official approach lodged by the Gunners as yet, they are reported to have scouted Diame in West Ham's midweek FA Cup defeat at Manchester United.

Allardyce accepts the situation is difficult, saying: "The owners have tried to renegotiate the contract, but they haven't been successful at the moment."

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