Luis Diaz 'demanding compensation package' from Barcelona if La Liga champions face registration problems while Bayern Munich plot transfer for Liverpool star

Diaz is keen to protect himself in the event of a transfer from Liverpool to Barcelona being agreed by asking for a compensation package from the La Liga champions. La Blaugrana's finances are tight and they have run into problems trying to register new signings in the recent past, leaving the Colombia international to ask for monetary compensation if he relocates to Catalonia but cannot be registered by the end of August.

AS understand that such an agreement would mean Diaz remains a Barcelona player but, instead of becoming a free agent beyond the registration deadline, he would be paid a considerable amount to 'cover the costs of the sporting damage' he would incur by not being allowed to play in matches. Whether Barcelona will even be able to convince Liverpool into selling the 28-year-old is another thing entirely, with the Premier League champions not currently looking to sell the former Porto star.

Barcelona aren't the only side said to be tracking Diaz. Bundesliga winners Bayern are also monitoring developments but they have yet to reach an agreement on personal terms with Diaz, having also been left disappointed by Barcelona target Nico Williams' decision to sign a new contract with Athletic Club.

There are plenty of obstacles blocking Diaz from making the move to Barcelona, but it is thought the winger wants to play for the club before he retires. However, he still has another two years left to run on his Liverpool contract and the Reds have shown little inclination to selling him so far this summer.