Bayern has been actively searching for a new left winger and it appears Diaz, who scored 17 goals and provided 8 assists in 50 appearances across all competitions last season, is their man.
Liverpool, having spent heavily this summer, needs to offload some players. The Merseyside club is now expected to focus on acquiring Alexander Isak from Newcastle. Meanwhile, Bayern hasn't given up on signing Stuttgart's talented youngster, Nikolas Nartey.
Bayern close to Diaz deal
Reports from Sportal suggest the two clubs are on the verge of a deal for the 28-year-old and only final details, primarily concerning potential bonuses, need to be ironed out.
The total fee for Diaz, including variables, will reportedly reach nearly €75 million. The player himself is also keen on the move.
Diaz is expected to sign a four-year contract until 2029, earning around €14 million gross annually at Bayern, a significant increase on his current Liverpool wages.
The Colombian international is currently in Tokyo with the Liverpool squad, but notably, he was left out of the squad for yesterday's friendly against AC Milan, which Liverpool lost 4-2.