The 28-year-old, who recorded 25 goal contributions last season, made it clear he sought a fresh challenge, despite Liverpool offering a new contract to extend his current deal, which had two years left.

Transfer expert Fabrizio Romano noted on X that Liverpool had planned further talks for an improved deal in September or October if Diaz had stayed, but his decision was firm.

Bayern's initial 67.5 million euro bid was rejected, but their follow-up offer of 70 million euros, plus 5 million euros in achievable add-ons, secured the deal.

This 75 million euro transfer marks Liverpool's third-largest sale, trailing only Philippe Coutinho and Luis Suarez's moves to Barcelona. Diaz's departure signals an active transfer window for Liverpool, who have already invested heavily and are poised for more.

The Reds are targeting Newcastle's Alexander Isak, with plans to break their own British transfer record, set with Florian Wirtz's 116 million pound signing, for the second time this summer.

Romano reported on X that Isak is solely focused on joining Liverpool, dismissing interest from Saudi clubs. To fund this ambitious move and bolster their squad on the left wing and at centre-back following Jarell Quansah's exit to Bayer Leverkusen, Liverpool anticipate further sales.

Romano also highlighted on X that Federico Chiesa is eager to leave Liverpool for more playing time, with Serie A clubs as his preferred destination.

Sources close to Liverpool, indicate that Harvey Elliott, a homegrown talent, is available for transfer, with his sale promising significant profit due to his academy status. Young prospects Tyler Morton and Ben Doak could also depart, with clubs like West Ham and Nottingham Forest showing interest.

Additionally, the arrival of Milos Kerkez from Bournemouth for 40 million pounds has sparked speculation about the futures of Andy Robertson and Kostas Tsimikas, with one potentially leaving to balance the squad.

Liverpool's head coach, Arne Slot, has remained focused on squad integration despite the transfer flurry. After a recent 4-2 pre-season loss to AC Milan in Hong Kong, Slot praised new signings like Kerkez and Hugo Ekitike, who could debut soon, while addressing Diaz and Darwin Nunez's absences as fitness-related.

With over a month left in the transfer window, Liverpool's aggressive strategy signals their intent to defend their Premier League title with a revamped, dynamic squad.

Report: Luis Diaz departs for Bayern Munich as Liverpool eye big moves