The 28-year-old Diaz has been a top priority for Bayern, who have failed to land other targets such as Nico Williams and Florian Wirtz. According to reports, Bayern has held talks with Liverpool over the weekend and is ready to propose a deal that could be difficult for the Reds to turn down.

Barcelona, who were previously seen as Diaz's ideal destination, is now set to sign Manchester United's Marcus Rashford on loan instead. If Diaz is sold, Bayern manager Arne Slot may look to sign Real Madrid's Rodrygo, a younger and more promising player who is set to be sold this summer.

Diaz's sale would likely be a significant loss for Liverpool, but it could also provide an opportunity for Bayern to strengthen their squad. The Brazilian Rodrygo has more potential than Diaz and could be a great addition to the Bayern team.