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.
“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.”
Full-time in Hong Kong. pic.twitter.com/oMHL63CcPL
— Liverpool FC (@LFC) July 26, 2025
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.
