Wolfsburg coach Felix Magath has urged the club to sort out Diego’s future by the end of July.
The midfielder, who has won 33 caps for Brazil, spent last season on loan at Atlético Madrid after falling out with Magath.
Diego has attracted interest from Brazilian giants Flamengo, and Magath has admitted that he wants an end to the speculation so he can concentrate on preparing his squad for the 2012-13 season.
"Topics such as [Simon] Kjaer, Diego, or whoever – that must be decided by the end of July," the 58-year-old told reporters. "Otherwise we will decide that the issue will end and these players will go into the season with us.
"I know that he has offers. Probably from Flamengo. For Brazilians, the domestic league is always a stepping stone for the national team.
"By the end of July, we want to have the most important transfers in the bag. That"s before our training camp and so it has been discussed with our board."
