Diaz, 28, looks set to head to the Bundesliga champions after the two clubs agreed to a fee of €75 million on Sunday.
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According to the Daily Mail, Diaz’s departure will free up space for Liverpool to make a move for Newcastle forward Isak, 25.
Isak is pushing for a move away from St James’ Park and several reports have suggested that he has his heart set on a move to the Premier League champions.
The Sweden international ruled himself out of the club’s pre-season tour of Asia and manager Eddie Howe has since said there is “no chance” he will join up with his teammates.