Leeds United midfielder Diagouraga has not played for the club since their season-opening 3-0 defeat at QPR.
The 29-year-old was close to signing for Rotherham earlier in this transfer window.
But BBC Radio Leeds claim a deal with the Millers has fallen through.
Leeds United's January ins and outs
Sun, December 25, 2016
Express Sport takes a look at the potential ins and outs at Elland Road
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West Ham beat Leeds to Ashley Fletcher in the summer but the striker is already available for £2m
Instead, Leeds are hoping Ipswich will take Diagouraga on loan until the end of the season.
Leeds signed Diagouraga from Brentford last January and the Frenchman made 19 appearances for the Elland Road club last season.
But the arrival of manager Garry Monk in the summer has seen the former Watford trainee struggle for game time.
Toumani Diagouraga could leave Leeds for Ipswich
Signs are Diagouraga could be off to Ipswich Town on loan for the rest of the season. Deal not done yet but Rotherham move looks dead. #lufc
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— Adam Pope (@APOPEY) January 21, 2017
Diagouraga (left) saw a move to Rotherham fall through earlier this month
Ipswich sit 14th in the Championship and have failed to win back-to-back games all season.
The Tractor Boys suffered a shock 1-0 defeat at Lincoln City in their FA Cup third round replay on Tuesday.