Liverpool has agreed to sell winger Luis Diaz to Bayern Munich for a total fee of £65.5 million. The 25-year-old forward, who has two years remaining on his contract with Liverpool, has been granted permission to leave the club's Asia tour, currently in Tokyo, to complete the transfer.

Initially, Liverpool rejected Bayern's first offer, which was rumored to be around £58.5 million. However, the German club returned with a more enticing proposal that included performance-related add-ons, leading Liverpool to accept what they believe is a fair market value for the player. Despite their reluctance to part ways with Diaz, the player expressed a desire to join Bayern, prompting the move.

Diaz's transfer marks a significant moment for Liverpool, who had previously held firm on their key players. The club's decision comes after two failed attempts to negotiate a contract extension with Diaz, who had indicated his wish to leave as early as the summer of 2024. His contributions were pivotal in Liverpool winning their 20th Premier League title, but the club ultimately decided to respect his request.

Having joined Liverpool in January 2022 for £37.5 million, Diaz's departure will not disrupt Liverpool's plans for squad improvement, as they have already signed Hugo Ekitike to enhance their attacking options. Coach Arne Slot had previously stated that Diaz was omitted from the squad for a friendly against AC Milan due to ongoing transfer speculation.

With this sale, Liverpool has already generated over £60 million from player sales this summer, and the club aims to maintain a healthy financial balance while exploring further reinforcements. The potential funds from Diaz's transfer could also enable them to pursue additional targets, including Newcastle's Alexander Isak, should they wish to strengthen their squad further.