Liverpool are set to axe Goalkeeper Loris Karius to maintain a 17-man foreign players in the team's Premier League squad
Karius is poised to leave Liverpool in the summer having not played since the 2018 Champions League final.
Currently, the German holds a fourth choice place at Anfield, behind Alisson, Caoimhin Kelleher and Adrian.
New signing, Diaz does count as a foreign player and Jurgen Klopp knows he has to replace one of his oversea stars to include the Colombia international to his Premier League squad and avoids breaching the Homegrown Player rule.
Diaz will be hoping to make his Premier League debut when Liverpool welcome Leicester City to Anfield, Feb 10.
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