The 30-year-old joined Rangers on loan for the remainder of the season in January.
“We are talking right now with the club to see what will happen after this season but I will tell you now this club is magic, really unbelievable,” he told the club’s official website.
“The fans have been great and I have won two trophies and that is why I came here.
“Before I joined people asked me why I was coming because some people thought I was better than that, but no, I am not, this club is magic and I love the fans and want to thank them for everything.”
Diouf continued: “Ibrox was brilliant, an amazing atmosphere and one of the best moments of my career.
“My whole time here has been one of the best in my football life.
“I’ve only been here for four months but everyone loves me and I got one of the best receptions from the fans.
“Winning was such a big moment, but not for me, for the fans. That is what football is about, the supporters.”