Sam Allardyce has played down rumours of a contract dispute with Mohamed Diame and expects the midfielder to sign a new deal to stay at West Ham, Sky Sports understand.

Diame has been the subject of intense transfer speculation this month after it came to light that a £3.5 million release clause existed in his contract, alerting a number of Premier League admirers.

There were rumours on Tuesday that the Senegal international was angry with the Hammers for attempting to default on the agreement and would take the matter to FIFA if it wasn’t honoured.

Arsenal are keen on bringing the 25-year-old to the Emirates Stadium before the transfer window closes but Allardyce is hopeful that he will sign a new contract to stay in east London.

“I would’ve thought so,” he said when asked if an amicable resolution could be reached.

“I don’t think the story today that the Mail put out is right. It’s just disruptive agents as always.”

“It really is difficult to secure the player that we’re looking for. Price and quality has to go together for us.

When quizzed on his own progress in the transfer market Allardyce was less than optimistic hinting that January isn’t the ideal shopping period to unearth value for money signings.

He added: “If the price is right and the player’s not good enough we have to say no, and if the player’s good enough but the price is too big we have to say no.

“It’s an unfortunate situation that we find ourselves in. I’m not trying to put the owners under pressure here at all whatsoever, it’s just a fact of life.”

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