Liverpool are preparing to table a summer bid for highly rated Wolfsburg playmaker Diego in a deal that has been labelled as the potential bargain of the summer according to The Sun.
The 26-year-old Brazilian midfielder has been valued at €10million by the Bundesliga outfit, as Diego looks set to depart Germany after a solitary season.
Reds boss Kenny Dalglish is looking to add more creativity to the Liverpool midfield, after finding his side struggle to break teams down at times this season.
With the January additions of Luis Suarez and Andy Carroll, Liverpool now have a potent strikeforce, but often lack the cutting edge to service their front line.
Diego has been linked with a move to Anfield before, but at the time Wolfsburg's €15million price tag was considered too high.
Now under the ownership of Fenway Sports Group, Liverpool carry more weight in the transfer market, as they prepare to further strengthen the Reds’ squad.
Having snubbed a place on the Wolfsburg bench for last weekend's game against Hoffenheim, newly installed coach Felix Magath has given up hope of retaining Diego's services, and as a result has slashed his asking price accordingly.
"If a club wants to sign Diego, they need to get in touch with us," Magath told German newspaper Bild.
The Brazilian international is set to be hit with a hefty fine for his latest antics, but despite that, Magath insisted nothing concrete will be decided on his future until the club speaks to the player.
"There is no new state of affair, no decision has been taken yet - neither one way or the other and there is plenty of time until pre-season to have a conversation with Diego."
Liverpool director of football Damien Comolli has given the green light to proceed with negotiations that could see the exciting South American star make his long-awaited move to Anfield when the transfer window reopens in June.