Premier League - Diame claims Liverpool interest
The 24-year-old Senegal international claims he held talks with the Scot prior to his dismissal by owners Fenway Sports Group almost a fortnight ago.
There could be an outside chance of a deal being resurrected should Latics boss Roberto Martinez - who is expected to hold more talks with FSG having returned from holiday on Tuesday - be appointed to succeed Dalglish but Diame is currently looking elsewhere, although his preference is to remain in the Premier League.
"I met before Kenny Dalglish and we talked about next season but God decided to finish this situation," Diame told Sky Sports News.
"It is true I was very sad in my head as I was thinking to go there but that is okay as I think I have got other opportunities to go to another club.
"I am free and not everybody is free in this moment like a midfield player like me and that is why I have got a lot of clubs interested in me. I have to be composed and make a good decision for my future. I have got some offers from Spain, from France, from Turkey, but I really want to stay in the Premier League."