Manchester United have entered advanced negotiations with Amad's representatives over a new contract.
Amad, 22, is approaching the final six months of his current deal and although United have the option to trigger a one-year extension on his current terms, Old Trafford chiefs believe that the young star deserves a more lucrative long-term contract.
Having famously scored the winning goal in last season's dramatic 4-3 victory over Liverpool in the FA Cup, Amad was the hero once again in Sunday's Manchester derby. The Ivory Coast international won the penalty for Bruno Fernandes' 88th-minute equaliser before scoring the winner himself two minutes later, giving Ruben Amorim his first derby win.
Amad has been played as a wing-back and forward under Amorim, impressing United's new manager with consistently quality displays which have encouraged the big bosses at Old Trafford.
According to ESPN, only minor details are left to be concluded within the negotiations, as the two parties have been in talks for weeks. It's claimed that United's intention is to make the deal official before January 1, when Amad would be allowed to sign a pre-contract agreement with an overseas club.
Amad hadn't scored under Amorim until breaking Manchester City hearts, although he'd provided four assists in the six previous games. Amorim has praised predecessor Erik ten Hag for his role in the 22-year-old's development, saying: "He's so good, so humble.
"But let's stay calm with Amad, keep calm. It was the work with Erik and then Ruud [van Nistelrooy] did a great job and we have continued that. He can play both positions but this position in this type of game and his ability to run with the ball is really important. But all the players fit in my system. If they want and they are talented, every player in our squad can fit this system."
Ex-United captain Gary Neville told his Sky Sports podcast: "There was nothing else in front of them other than Amad Diallo. I called it in the first half and he was the player we featured before the game; he's the only player who is playing with anything like the freedom and energy, enthusiasm, tenacity and belief that represents what you would expect in a Premier League footballer playing for the club.
"The rest of them really are struggling confidence-wise and quality-wise. The club is struggling on and off the pitch at this moment in time. A lot of people hide behind the excuses… but he still plays football like he's a kid."