Luis Diaz was previously a primary transfer target for Barcelona. However, the Catalan club were reportedly frustrated by the perceived inactivity of the player and his agent.
The La Liga champions have now shifted their focus to securing Nico Williams from Athletic Bilbao.
Bayern enter Diaz race
Bayern Munich are reportedly preparing a move for Liverpool winger Luis Diaz, according to Bild, via Sportal.
The Bavarian club's sporting director, Max Eberl, has contacted Diaz's representatives to gauge the Colombian's interest in a potential transfer to the Allianz Arena.
The two parties have also discussed potential financial terms should a deal progress. The report suggests Diaz is open to leaving Liverpool, and an offer from Al-Nassr could also be forthcoming.
Last season, Luis Diaz scored 13 goals in 36 Premier League appearances, playing a significant role in Liverpool's title challenge.