France international Diaby left Aston Villa for the Saudi Pro League 18 months ago.
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Transfer expert Fabrizio Romano is reporting he is now weighing up a return to Europe and Italy.
Inter are now in talks with Al-Ittihad over a fee for Diaby.
Diaby's deal runs to 2029, with the winger making 24 appearances this season for three goals and 11 assists.