Diamond spent less than two years in charge of the current Aviva Premiership champions before being replaced by former Australia coach Eddie Jones in 2006, with the club languishing in the lower reaches of the table.
But since former director of rugby and current technical advisor Brendan Venter joined the club in 2009 there has been a marked upturn in Sarries' fortunes.
They were beaten Premiership finalists in 2010 before, with Mark McCall having succeeded Venter, claiming their maiden title in May.
The Watford-based side have faced criticism in some quarters for the number of South African players they have recruited, with Springbok World Cup captain John Smit the latest addition, but Diamond admires the transformation that has taken place at his former club.
"It's a long time ago since I left Saracens," he told the Sale website. "They have created a super franchise. They are now going away from home and winning at Gloucester, so we know that we are up against a top side on Sunday."
Sarries victory at Kingsholm last weekend consolidated their second place in the standings, but few would have expected Sale to be lying just one place behind them.
The Sharks have made a strong start to the season, despite the odd blip, and look a different proposition from the side threatened by relegation over the course of the past two seasons.
But Diamond is well aware a step up in performance will be required if they are to triumph at the current home of the champions.
He added: "In the end it's all about our performance this weekend. If we get it right in our set piece and defence then we stand a chance of getting something out of the game.
"They are one of the top super clubs in England right now and if you get anything from them away from home, then you are doing well."
Diamond has handed Wales' back-rower Andy Powell a first start for his new club, although the Lions' tourist faces a disciplinary hearing on Tuesday over a dangerous tackle against Leicester last weekend.
James Gaskell moves in to the second row with Richie Vernon on the blindside flank. Will Cliff gets the nod at scrum-half with Dwayne Peel and Scott Mathie injured.
McCall makes just two changes from the win over Gloucester as prop Deon Carstens comes into the front row in place of Rhys Gill while United States' international Chris Wyles starts on the wing for the first time since returning from the World Cup.
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