Despite interest from the La Liga giants, the Reds have made it clear they are not open to negotiations, leaving Barcelona to shift their focus elsewhere.
The Premier League champions have been busy reshaping their squad this summer, securing high-profile signings like Florian Wirtz, Milos Kerkez, Jeremie Frimpong, Armin Pecsi, and Freddie Woodman. These additions have positioned Liverpool as Europe's biggest spenders in the transfer market, with plans to further bolster their attack and defence still in motion, as reported by The Athletic.
Diaz, whose contract runs until 2027, has been a focal point of transfer speculation. Earlier in the 2024-25 season, his inconsistent performances might have tempted Liverpool to consider offers.
However, the 28-year-old's scintillating form in the latter stages of the campaign, where he scored 17 goals and provided eight assists across all competitions, changed their stance.
His versatility across the forward line proved vital under manager Arne Slot, who has said, "We're planning with Diaz for the 2025-26 season," signaling the club's commitment to keeping him.
Barcelona, eager to add a winger to compete with Lamine Yamal and Raphinha, identified Diaz as a prime target. Their sporting director, Deco, has said, "Players like Diaz have the right mindset. They're hungry to succeed."
However, Liverpool's resolute stance, demanding a valuation around 80 million euros, proved too steep for the financially constrained Catalans.
A report from Spanish outlet Sport highlighted that Liverpool "presented difficulties" in negotiations, forcing Barcelona to pivot to Athletic Bilbao's Nico Williams, whose 60 million euro release clause is more attainable.
Adding fuel to the saga, Colombian journalist Pipe Sierra reported that Diaz and his representatives were "upset" with Liverpool, believing the club had reneged on promises to discuss a new contract. Diaz himself has said, "I'm very happy at Liverpool, I've always said so," but also noted, "We're talking to clubs, it's normal in the market."
With Barcelona now targeting Williams and even considering Manchester United's Marcus Rashford as a late-window option, Diaz's immediate future remains with Liverpool.
The Reds' hardline approach, backed by sporting director Richard Hughes and CEO of football Michael Edwards, underscores their determination to retain a key player as they aim to defend their Premier League title.
As Liverpool prepare for their season opener against Bournemouth on August 15, fans can expect Diaz to continue dazzling on the wing, with his future at Anfield secure, for now.