Liverpool to include Luis Diaz in Rafael Leao swap deal?

AC Milan could reportedly try to pull off an audacious part-exchange deal involving Liverpool attacker Luis Diaz and Rafael Leao.

Since arriving from Porto last January, Diaz has quickly become a fan favourite at Anfield with his effervescent displays on the left-hand side of Jurgen Klopp's attack.

However, the Colombia international has been unable to contribute to the Reds' efforts for the majority of the 2022-23 season, having been sidelined since October with a serious knee injury.

Diaz was initially due to return to action after the World Cup break, but he suffered a setback while in Dubai during a winter training camp and was forced to undergo surgery.

The 26-year-old should be back at Klopp's disposal within the next few weeks, but he is facing an intense battle to regain his spot in the side following the capture of Cody Gakpo and strong form of Darwin Nunez.

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Diaz remains under contract at Anfield until 2027 and has shown no willingness to exit early, but according to Calciomercatoweb, Milan could use Liverpool's interest in Leao to their advantage and try to bring the former to San Siro.

The Italian champions are struggling to agree a new contract with Portugal star Leao, who is in the final 18 months of his current deal and could be on the move this summer if he does not sign fresh terms.

Milan are fighting tooth and nail to tie Leao down to a new deal, but the Rossoneri would be expected to listen to offers at the end of the season rather than risk losing him for nothing in 2024.

Liverpool are said to be one of several Premier League sides interested in Leao, but Milan have insisted that any suitors must fork out an extortionate fee of €120m (£105.8m) to €150m (£132.3m) to sign the 23-year-old.

In a bid to drive the price down, the report claims that Liverpool could offer Diaz in a part-exchange deal, although they would still need to stump up a cash sum as well as offloading the South American.

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As things stand, Milan are only interested in nine-figure cash offers, but the Rossoneri may have to relax their demands if Leao continues to wind down his current contract.

The former Sporting Lisbon starlet - who is also admired by Chelsea, Manchester City and Manchester United - has registered 36 goals and 31 assists in 147 games for Milan since joining in 2019.

Leao has nine goals and 10 assists under his belt from 32 matches in the 2022-23 campaign, setting up Junior Messias's strike in Sunday's 2-0 Serie A win over Atalanta BC.

Meanwhile, Diaz has posted 10 goals and eight assists in 38 games during his first 12 months at Liverpool, scoring four times and setting up three more strikes in 12 games this term.

The former Porto man is back out running at the AXA Training Centre, but he will not be involved when Liverpool return to Premier League action at home to Wolverhampton Wanderers on Wednesday night.