The Portugal forward died along with his younger brother Andre Silva in the accident in Zamora on Thursday morning.
“Liverpool Football Club are devastated by the tragic passing of Diogo Jota,” said a statement.
“The club have been informed the 28-year-old has passed away following a road traffic accident in Spain along with his brother, Andre.
“Liverpool FC will be making no further comment at this time and request the privacy of Diogo and Andre’s family, friends, team-mates and club staff is respected as they try to come to terms with an unimaginable loss.