The striker – who only graduated to the Stadio Olimpico-based side’s first-team this season – has emerged as one of Serie A’s top young talents after a string of promising displays.
Despite having made only seven top tier appearances, Diao has already netted two goals, taking the record of the youngest ever scorer on the division’s history in the process.
His impressive displays have alerted interest from across Europe, with Liverpool and City thought to be particularly interested.
Reports suggest that both clubs are monitoring his progress closely, and may mount January or end of season raids for his signature.
The youngster is of Senegalese descent but was born in Spain, where he started his career with Barcelona.
After seven years in their famed La Masia academy set-up he eventually opted to leave the Catalan club in 2011 to join Lazio in search of regular action.
Diao’s switch appears to have paid off, with the wonderkid already a valued member of the Rome side’s first-team squad.