Liverpool have informed manager Jurgen Klopp that funds must be raised by sanctioning the sales of some players before they can facilitate a move for Bayern's Thiago Alcantara.
Bayern Munich have admitted that Thiago wishes to leave the club this summer and Liverpool have been heavily linked with a move for the midfielder, but financial concerns due to the ongoing pandemic have left them hesitant in the transfer market.
After previously being seen as the front runners to sign striker Timo Werner, his price tag meant that Chelsea completed the signing ahead of the Reds. While interest seems to have cooled in Thiago, Kicker report that Klopp is still very keen on bringing him to Anfield.
The issue once again, however, is finances. Liverpool's hierarchy have told Klopp that players cannot be brought in until some funds have been raised through player sales. Thiago is supposedly valued at £32m by Bayern, but with just one year remaining on his contract, Liverpool are looking at a fee closer to £18m.
The report further states that Naby Keita could be used to raise funds for other transfers, but after a slow start, he's starting to prove his worth in the starting XI. It's unlikely that Klopp is looking to get rid of the 25-year-old so soon after bringing him to Anfield.
Liverpool are aware that they must add to their title winning squad in order to keep things fresh and stay at the top of the pile and their interest in Thiago seems fairly concrete.
The Reds have had a £10m bid for relegated Norwich defender Jamal Lewis rejected, and could continue to look for younger, more affordable alternatives as a more cost-effective way of bolstering their squad.
Thiago joined Bayern in 2013 and has been influential in their dominant decade of success, that's seen them win eight consecutive Bundesliga titles among countless other trophies. He's made 36 appearances in all competitions this season and would no doubt improve Liverpool should he sign, but for now the transfer remains in the air.