Contract negotiations remain a prominent topic for the Reds, even as Arne Slot and his team enjoy a fantastic start to the season.
Mohamed Salah, Virgil van Dijk and Trent Alexander-Arnold are all in the final year of their current deals, and the club is making every effort to retain the services of their star players.
In the long term, several other contracts will require attention and the Liverpool hierarchy faces important decisions, including securing the future of Diaz at the club.
Diaz demands massive wage increase amid Serie A interest
According to Anfield Watch, Diaz is seeking a wage increase from £55k to £125k per week, which would put him on par with some of the top earners at the club, such as Darwin Nunez and Diogo Jota.
The report adds that the 27-year-old's demands come amid interest in his services from AC Milan, who are weighing up potential replacements for their star winger Rafael Leao.
However, it is understood that if the Colombian stands by his demand, the Rossoneri will likely be forced to look elsewhere, as they will struggle to match his salary expectations.
Liverpool signed Diaz from Porto in January 2022 for a fee of around £37m, and his current deal at Anfield runs until the end of the 2026-27 Premier League season.
The Colombian attacker has been in excellent form this season, netting nine goals in 21 appearances across all competitions.
Liverpool eyeing Brazilian forward as Nunez replacement
While Richard Hughes' immediate focus is on tying down existing players, Anfield Watch also report that Liverpool are eyeing up reinforcements for January.
The player rumoured to be close to the top of the club's transfer shortlist is Brighton & Hove Albion attacker Joao Pedro.
It is understood that the 23-year-old is viewed as an upgrade on Nunez, who has only scored two goals in 11 league games this season, and has come under plenty of criticism in recent weeks.
Liverpool were previously linked with the Brazilian forward before his move to Watford as a potential long-term replacement for former Reds striker Roberto Firmino.
Slot's side are currently leading the Premier League standings, four points clear of Chelsea with a game in hand, and are back in action on Saturday afternoon against Fulham at Anfield.
Written by
Devesh Jaganath