Bayern were understood to have reopened dialogue regarding a move after having an initial offer of 67.5million euros (£59m) dismissed last week.

And it is understood that a deal is close between the Bundesliga champions and Liverpool for Diaz.

The 28-year-old was left out of Liverpool’s 4-2 friendly defeat to AC Milan in Hong Kong on Saturday as speculation surrounding his future continued to mount.

Speaking post-match, head coach Arne Slot said: “In Lucho’s (Diaz’s) situation, there’s a lot of rumours around him lately and I cannot go into that.

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“He’s training really well with us but we have decided for now not to play him yet.

“I’m used to talking to most of my players on a regular basis.

I cannot comment much more about that.”

Liverpool have been busy in the transfer window so far and have bolstered their attacking options with Florian Wirtz – who made his first start as a false nine on Saturday – and Hugo Ekitike joining the club.

There have also been further arrivals on Merseyside, with Jeremie Frimpong, left-back Milos Kerkez and goalkeeper Giorgi Mamardashvili all signing and the trio played in the second half of Saturday’s friendly.