Liverpool transfer news: Luis Diaz completes move to Bayern Munich as Arne Slot's Alexander Isak funds boosted

Luis Diaz has completed his move to Bayern Munich from Liverpool for a fee of £65.5m, and his transfer could pave the way for more signings.

The Reds have looked to strengthen considerably this summer following their relative inactivity in the prior two transfer windows, and they have so far been the Premier League's biggest spenders this window.

With the club spending close to £300m so far, it is understandable that they have looked to recoup much of their expenditure through sales.

Winger Diaz has frequently been linked with an exit from Anfield, and considering he had just two years remaining on his deal, the Reds have decided to cash in to Bayern Munich.

The Colombian insisted that he accomplished what he needed to with the Merseysiders, saying in an Instagram post: "It's good to be leaving with the feeling of a duty fulfilled, and, most of all, to be leaving a champion."

While the 28-year-old was a key contributor to Liverpool's Premier League title win in 2024-25, his exit could allow Arne Slot's side to spend big on Newcastle United striker Alexander Isak, who is said to be their next target.

Why selling Diaz to Bayern was the right choice

Having bought Florian Wirtz from Bayer Leverkusen for a fee that could rise to £116m, as well as Hugo Ekitike for an initial £69m from Eintracht Frankfurt, Liverpool cannot be said to be lacking ambition.

They are also reportedly in the market for a centre-back following the exit of Jarell Quansah to Leverkusen, with Crystal Palace's Marc Guehi touted as a potential target.

If the champions wish to sign Isak, it is difficult to see how they would be able to afford further investment into the squad without significant departures.

Diaz's move to Bayern could also ultimately prove to be the correct decision for the player given he has signed a four-year deal with the Bavarians, whereas Liverpool were reportedly reluctant to agree new terms with the forward because of his age.

Do Liverpool need a Luis Diaz replacement?

Now that Diaz has left the club, Cody Gakpo is the Reds' only remaining left-winger, though 16-year-old Rio Ngumoha has impressed during pre-season so far.

While Gakpo contributed significantly last term - he scored 18 goals and provided six assists - it would be risky to rely on him for the majority of the season with Ngumoha as his backup.

Wirtz has operated from the left for Leverkusen and would be able to play out wide, while Ekitike is a versatile forward and could play across the frontline if needed.