German champions Bayern Munich have agreed to sign Liverpool winger Luis Diaz in a £65.5mn ($88mn) deal, according to multiple reports. Bayern had an initial offer of £59mn rejected by the Premier League champions last week, but their improved bid looks set to bring the Colombia international to the Allianz Arena.

Diaz has reportedly been given permission to leave Liverpool's pre-season tour of Asia in order to complete a medical with Bayern. He joined Liverpool from Porto in January 2022 and won the Premier League, FA Cup and League Cup during his time at Anfield.

The 28-year-old made 50 appearances and scored 17 goals in all competitions last season as Arne Slot's team clinched the English title for the first time in five years. Diaz was left out of Liverpool's 4-2 friendly defeat against AC Milan in Hong Kong on Saturday as speculation mounted over his future.

"In Lucho's (Diaz's) situation, there's a lot of rumours around him lately and I cannot go into that," Slot said after the Milan match. "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."

Diaz's impending signing gives Bayern a quality replacement for Germany forward Jamal Musiala, who has been ruled out for a "long period" after he suffered a broken leg and dislocated ankle at the Club World Cup this month.

Liverpool have been busy in the transfer window, bolstering their attacking options with expensive swoops for Bayer Leverkusen playmaker Florian Wirtz and Eintracht Frankfurt striker Hugo Ekitike. Defenders Jeremie Frimpong and Milos Kerkez arrived from Leverkusen and Bournemouth respectively, while goalkeeper Giorgi Mamardashvili joined from Valencia. The Reds are also believed to be interested in making a bid for Newcastle's £150mn-rated striker Alexander Isak.