Bayern Munich join race for Liverpool star as Reds face big transfer decision
The future of the 28-year-old has been a topic of discussion this summer after Barcelona made an approach earlier this month.
Liverpool rejected that move, but that has not snuffed out transfer talk, with Saudi side Al Nassr also interested in the Colombian.
Sky in Germany now report that Bayern are also fans of Diaz and have begun to explore whether a deal can be done.
The Reds rejecting Barcelona's approach for Diaz suggests they are not interested in selling him this summer, but it has not been entirely ruled out.
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The left-winger has two years left on his contract at Liverpool and, given his age, the Reds will never get as much for him as they could do this summer.
The former Porto star played a big part in Liverpool's dominant Premier League title win last season, playing 36 league games, scoring 13 goals and providing five assists.
It would be a big decision to sell Diaz after the contribution he made over the last campaign, but Arne Slot does also have Cody Gakpo to play on the left wing.
Liverpool legend Jamie Carragher says he was leaning towards wanting to see Diaz sold during this transfer window, but has changed his mind.
'If I'm being honest, for the majority of this season up until Christmas, I was thinking you sell Diaz in the summer,' Carragher told Sky.
'The way he's played and the way Liverpool's front line might change and with the fact that he can play through the middle in the manager's eyes, he's now going to stay and I think it might be other players who move on in the front line rather than Diaz.'
Diaz spoke about the transfer speculation surrounding him earlier this month, saying he is more than happy at Liverpool, but admitted there has been contact with other clubs.
'I'm very happy there at Liverpool, I've always said so. They've welcomed me very well,' Diaz said when asked about links with Barcelona.
'We're in contact with them [Liverpool] right now because we're obviously talking to clubs. It's normal. More Trending
'The transfer market is opening, and we're trying to arrange what's best for us.'
Apps: 82 (21)
Goals: 29
Assists: 15
When asked about renewing his contract with Liverpool, Diaz replied: 'As I told you, I'm waiting for it to happen.
'If Liverpool gives us a good renewal or I get the two years I need with them, I'll be happy and content.
'It all depends on them, I'm just here to decide and look at what's best for us.'
MORE: Arsenal flop returns after loan club have no interest in keeping him
MORE: Man Utd make contact over moves for two England international strikers
MORE: Brentford provide major update on Arsenal's transfer move for Christian Norgaard
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