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Both Manchester City and Bayern Munich were also interested in signing the 22-year-old.
City viewed Wirtz as a potential replacement for Kevin De Bruyne, but pulled out of the race due to financial concerns and have since spent £46.3m on Tijjani Reijnders and £34m on Rayan Cherki instead.
Bayern, meanwhile, missed out on Wirtz after the player was convinced to join Liverpool by manager Arne Slot and sporting director Richard Hughes.
However, Watzke is disappointed to see one of Germany's top talents leaving the Bundesliga and claims he would have preferred to see Wirtz join Bayern.
"It's a real shame, especially for the DFL (German Football League), that a player like Florian Wirtz is disappearing from the Bundesliga," Watzke told kicker.
"Of course, you have the feeling that we could do something – with Flo (Wirtz) not coming, with Leroy leaving, with Thomas leaving.
"I was surprised that (Sane) is going to Turkey.
But it's his decision and he'll have his reasons for it."
Wirtz is closing in on a move to Liverpool(Image: Getty Images)
Kimmich's comments after Bayern's sporting director Max Eberl explained that the club would not have been able to match money Liverpool are paying for Wirtz.
Florian Wirtz is an outstanding player.
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