Luis Diaz transfer news: LIV agree £65.5m deal to sell winger to Bayern Munich

Liverpool have agreed a deal to sell Luis Diaz to Bayern Munich.

The total fee for the deal is £65.5m.

Diaz, who has two years remaining on his Liverpool contract, now has permission to leave the club's Asia tour. He is currently in Tokyo with the team, but will look to travel in the next 24 hours.

Liverpool rejected Bayern's initial advances and an offer believed to be in the region of £58.5m (€67m) but the German returned with a second offer of £65.4m (€75m) including add-ons.

The Reds have accepted the offer after securing what the club considers to be full market value.

Throughout the summer, Liverpool had been unwilling to sell a key first-team player but Diaz and his representatives pushed for a move. He first signalled a wish to leave in the summer of 2024, but the club held firm while assessing both the squad and the market.

Two separate attempts from Liverpool to agree a contract extension failed due to a gap between offers and demands.

Diaz joined Liverpool in January 2022 for a guaranteed £37.5m (€42.9m) payment, signing a five-and-a-half-year contract.

Slot: Diaz was left out vs AC Milan due to uncertain future

On Saturday, Liverpool head coach Arne Slot confirmed that Diaz was left out of the squad to face AC Milan due to speculation surrounding his future, but Darwin Nunez missed out due to injury.

"One of the positions that we didn't have was a No 9," Slot told LFC TV after the 4-2 defeat.

"We had one, Hugo [Ekitike], but he wasn't ready to play yet. Darwin was injured. Lucho [Luis Diaz] couldn't play as well."

Slot reiterated this with further comments, adding: "In Lucho's situation it was, yeah [the reason why he was left out].

"There's a lot of rumours around him lately and I cannot go into that. He's training 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. Like I said, Lucho is training really well and we've decided that he's not playing at the moment in the games. I cannot comment much more about that."

Could Diaz's sale fund a move for Isak?

Sky Sports News' Mark McAdam:

The fact that Liverpool made an approach suggests they were willing to pay a fee at least in the region of what Newcastle are looking for, which is around £150m.

But can they afford it?

In terms of player sales, Liverpool have generated more than £60m already.

The four players they've moved on this summer have either been academy players, who represent pure profit under PSR, or have been sold on for big profits.

Then, if you add in the likes of Diaz, Darwin Nunez and Harvey Elliott, those three players alone could raise another £150m. That would also create space in the forward line, potentially.

When you take that into account, their net spend potentially starts looking quite healthy, on top of being a really well-run club.