Reports claimed on Wednesday that the midfielder, who has been linked with a move to Arsenal, was angry with the Hammers for trying to renege on the 25-year-old's £3.5m buyout clause in his contract.
However, Allardyce has denied any falling out between the player and the club and is confident that Diame will sign new terms at Upton Park.
Asked if a solution could be found over the midfielder, Allardyce told Sky Sports News: "I would've thought so.
"I don't think the story today that the [Daily] Mail put out is right. It's just disruptive agents as always."
Diame moved to the club from Wigan Athletic in the summer.