The Reds are looking to appoint Arne Slot's successor after he was sacked on Saturday, and Andoni Iraola has emerged as the top contender following his exit from Bournemouth.
Iraola is arguably one of Europe's most exciting managers, and getting a deal completed for him could coincide with snapping up Diomande.
The RB Leipzig sensation has been on their wishlist to replace the departing Mohamed Salah, and according to TEAMtalk, they're ready to act on their admiration of the skilful winger.
Leipzig are demanding at least €100million (£87m) before considering a sale, but Liverpool could consider a deal close to that price as they attempt to fend off growing competition.
Bayern Munich and PSG are two strong admirers of Diomande, although the Reds are the ones in the driving seat for his signature.
Still only 19, Diomande lit up the Bundesliga during 2025/26 with 23 goal involvements in 36 appearances, including a hat-trick in a 6-0 victory over Eintracht Frankfurt.