Liverpool winger has agreed to join , according to reports in Spain.
reported on Tuesday afternoon that the Colombia international has agreed a five-year contract with the champions.
The report adds that City are ready to pay Liverpool a €70 million (£59.8m) fee for the 27-year-old.
In response to the report from Spanish media, Liverpool sources claim that the club have not received an approach from City for Diaz.
In an interview in April, Diaz gave no indication that he was looking to leave Liverpool in the summer transfer window.
‘The truth is that I am very happy to be here. Great years are coming for the club, I have no doubt about that,’ Diaz said.
‘You learn more and more to be a professional, to be a better person, to be a good teammate and a good guy. Personally, I will always try to do my best, always try to give 100 per cent, to always stand out on the field, which is what I came [here] to do. I’m always grateful to God for every opportunity.’
City also appear to be well-stocked on the left side of their attack with both Jeremy Doku and Jack Grealish competing for a place.
Liverpool signed Diaz from Porto for an initial fee of £37m in January 2022. He has scored 24 goals in 98 appearances since his move to the Premier League and has helped Liverpool win the FA Cup and two Carabao Cup trophies.
Diaz has also attracted interest from Barcelona as they consider the Liverpool winger as an alternative to Athletic Bilbao’s Nico Williams.
Liverpool have yet to bring in a new addition to Arne Slot’s squad ahead of the new Premier League campaign.
On Monday, Liverpool were dealt a major blow as Martin Zubimendi, their top midfield target, .
City, meanwhile, have already secured one new signing this summer as Brazilian winger Savinho joined from French side Troyes in July in a deal worth €40m (£30.8m).
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