The Colombian, alongside Manchester United's Marcus Rashford, has been linked with the Catalan giants as they plan to bolster their squad under manager Hansi Flick.
Diaz, 28, delivered a stellar season for Liverpool, who clinched the Premier League title. He notched 17 goals and five assists in 49 appearances, including a hat-trick in the Champions League against Bayer Leverkusen—his first for the Reds.
His electric start to the 2024-25 campaign saw him score three goals in his opening three league games, with a brace at Old Trafford and a stunning strike against Brentford.
Deco, speaking to RAC1, acknowledged Barcelona's admiration for Diaz. "We like Luis Diaz, we like Marcus Rashford, and we like other players," he said. "When we go to the market, there are names that we know and that could improve the team."
However, he emphasized that Barcelona's priority remains securing contract renewals for key players like Pedri, Gavi, Araujo, Raphinha, and Kounde. "Renewals are also signings," Deco added. "Lamine's renewal is the best signing in history."
Deco also hinted at Barcelona's need for a player with a unique profile to complement their strikers, noting that midfielder Fermin Lopez has performed well as a makeshift winger. Any move for Diaz would likely depend on Barcelona raising funds through player sales.
Diaz, who joined Liverpool from Porto in January 2022 for a fee rising to 50 million pounds, remains relaxed about his future. With two years left on his contract, he told Telemundo, "I'm happy, calm, enjoying the football played at this great team. We'll talk about the renewal. I would stay however many years it takes, but it depends on the club."
His comments suggest openness to staying at Anfield, though no new deal has been finalized.
Meanwhile, Barcelona's official X account has remained silent on transfer rumours, focusing instead on their La Liga campaign and youth academy updates.
Liverpool's next steps hinge on contract negotiations, while Barcelona's ability to fund a move could shape Diaz's future. For now, the winger remains a key figure in Liverpool's attack, with his dazzling performances keeping both clubs on high alert.
Liverpool have reportedly launched an audacious move to secure Bayer Leverkusen's star midfielder Florian Wirtz, outpacing rivals Bayern Munich in the race for the German sensation's signature.
Real Madrid have announced that captain Luka Modric will leave the club after the FIFA Club World Cup, starting 18 June in the United States, ending an iconic era.
Arsenal are reportedly gearing up for a transformative summer transfer window, with Mikel Arteta and new sporting director Andrea Berta driving an ambitious recruitment push to end the Gunners' five-year trophy drought.
Newcastle United have firmly rebuffed Liverpool's approach for their talismanic striker Alexander Isak, signaling their intent to keep the Swedish star at St James' Park, according to transfer expert Fabrizio Romano.
