The former Liverpool player has been training with the Latics after he was released from the Rovers this summer, along with out-of-contract goalkeeper Richard Kingston.
Reports suggested that the Premier League side were interested in the 30-year-old. However Martinez has been quick to dismiss the rumours.
"We have Kingson and Diouf training with us but I think it has been blown out of proportion," he said.
“I don't think we ever considered [signing Diouf]. He is a fantastic character and has had different stories and a different perception in the media but he has been a real professional and has been working hard."
Meanwhile, Wigan travel to Aston Villa this weekend in the Premier League.