With his contract due to expire in June, the Senegalese forward has been linked with a summer exit, but the 96ers were hoping he would change his mind and accept their new contract offer.
However, the Bundesliga side confirmed to Bild that Mame Biram Diouf would be leaving Hannover this summer.
The 26-year-old has a very lucrative offer from Wolfsburg reportedly worth around €4 million per season, but he seems to be awaiting other proposals as clubs from the English Premier League are believed to be keen.
Mame Biram Diouf joined Hannover in a low-profile move from Manchester United in January of 2012, but he has largely impressed in German Bundesliga.
The Senegal international went on to make 47 Bundesliga appearances for the 96ers, scoring 20 goals in the process.