Los Ché boss Ronald Koeman has had favourable reports about the 22-year-old from his English scouts and believes that he would add strength to his midfield.
The Gunners have been reported as accepting Newcastle's £5.5m bid, but Diarra may fancy a switch to Spanish football is Valencia were to make an approach.
Also in the running are Tottenham Hotspur and their interest has meant that the Magpies have been unable to push through a deal despite offering the player a four year deal worth £35,000-a-week.
While Juande Ramos is said to view Diarra as the player to give his midfield some much-needed strength, Valencia's involvement could see the whole scenario change.
The Spanish league side are keen to bolster their squad as Koeman looks to make his mark after replacing Quique Sánchez Flores before Christmas.
Manuel Fernandes has already left the club, to return on loan to Everton, while David Albelda has been told that he is surplus to requirements.
The Gunners have been reported as accepting Newcastle's £5.5m bid, but Diarra may fancy a switch to Spanish football is Valencia were to make an approach.
Also in the running are Tottenham Hotspur and their interest has meant that the Magpies have been unable to push through a deal despite offering the player a four year deal worth £35,000-a-week.
While Juande Ramos is said to view Diarra as the player to give his midfield some much-needed strength, Valencia's involvement could see the whole scenario change.
The Spanish league side are keen to bolster their squad as Koeman looks to make his mark after replacing Quique Sánchez Flores before Christmas.
Manuel Fernandes has already left the club, to return on loan to Everton, while David Albelda has been told that he is surplus to requirements.
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