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The German giants have reportedly reached a personal agreement with the Liverpool winger, who is now set to sign a four-year deal until 2029.
If all goes to plan, Diaz will soon be swapping Anfield chants for Bavarian cheers.
Diaz, 28, has agreed to earn around €14 million per season at Bayern (via Tobi Altschaffl).
While Liverpool are yet to accept any deal, talks between the clubs are ongoing.
And if history tells us anything, when Bayern really want someone — they usually get their man.
The Colombian star is coming off his best season in a Liverpool shirt, scoring 17 goals in all competitions.
But despite his importance, there have been no talks of a new contract so far.
Diaz still has two years left on his current deal, but Liverpool seems open to negotiations — if the price is right.
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Bayern’s opening bid was reportedly worth €67.5 million (£58.6m).
According to Sport Bild, another meeting is on the cards between the two clubs.
The deal isn’t done yet, but with personal terms agreed, it’s now up to Liverpool and Bayern to settle on a fee.