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Two separate attempts from Liverpool to agree a contract extension failed due to a gap between offers and demands, and after Diaz helped deliver the club's 20th Premier League title, Liverpool reluctantly agreed to his request to leave.
Diaz joined Liverpool in January 2022 for a guaranteed £37.5m (€42.9m) payment, signing a five-and-a-half-year contract.
His departure does not alter Liverpool's recruitment plans with Hugo Ekitike already signed to strengthen the club's attacking depth.
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In
Milos Kerkez - Bournemouth, £40m
Florian Wirtz - Bayer Leverkusen, £116m
Jeremie Frimpong - Bayer Leverkusen, £29.5m
Giorgi Mamardashvili - Valencia, £29m
Hugo Ekitike - Eintracht Frankfurt, £79m
Armin Pecsi - Puskas Akademia
Freddie Woodman - Preston, free
Out
Luis Diaz - Bayern Munich, £65.5m
Trent Alexander-Arnold - Real Madrid, £10m
Caoimhin Kelleher - Brentford, £18m
Jarell Quansah - Bayer Leverkusen, £35m
Nat Phillips - West Brom, £3m
Vitezslav Jaros - Ajax, loan
Owen Beck - Derby, loan
Sky Sports to show 215 live Premier League games from next season
From next season, Sky Sports' Premier League coverage will increase from 128 matches to at least 215 games exclusively live.
And 80 per cent of all televised Premier League games next season are on Sky Sports.