Liverpool manager Arne Slot has reportedly given the green light for talks to begin over a new contract for Colombian winger Luis Diaz.
The former Porto man was heavily linked with a move away from Anfield during the summer transfer window, after experiencing a disrupted 2023-24 season in which his parents were kidnapped in a horrifying ordeal in Colombia.
Diaz's parents were eventually rescued, and the 27-year-old only missed one Premier League game last term, while recording 13 goals and five assists from 51 appearances across all competitions.
The winger's numbers at Liverpool have often been solid without reaching spectacular levels, though, and Barcelona were believed to have been keeping a close eye on his situation over the summer.
However, the transfer window shut with Diaz still committed to Liverpool, and the attacker has thrived under the tutelage of Slot, scoring five goals and setting up one more in his first five Premier League games of the season.
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Liverpool 'were open' to selling Diaz
Diaz netted twice in Saturday's 3-0 victory over Bournemouth, having previously bagged a brace in the identical win over Manchester United at Old Trafford while scoring and setting up another against Brentford.
The South American is still on the same terms he signed upon his arrival in January 2022 - which do not expire for another three years - but according to Football Insider, a renewal could now be in the pipeline.
The report alleges that Liverpool would have had no qualms about selling Diaz for around £50m over the summer, and both Barcelona and Paris Saint-Germain were keeping tabs on his situation.
However, the winger has now 'won over' Slot, who has given the thumbs-up to a new contract for the in-form man after his side could not strike a deal with Newcastle United for Anthony Gordon.
As a result, discussions are reportedly set to begin with Diaz's camp in the near future, as Liverpool endeavour to tie him down for the long-term, and he could also expect a salary increase thanks to his blistering form.
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Liverpool forked out £42.5m to bring Diaz to the club from Porto two-and-a-half years ago, and the South American now boasts 29 goals and 14 assists in 104 matches for the Reds in all tournaments.
What about Mohamed Salah, Virgil van Dijk and Trent Alexander-Arnold?
No-one can argue that Diaz does not deserve a new-and-improved contract on current form, but the Colombian's expected renewal is another job for snowed-under sporting director Richard Hughes to take care of.
All of Virgil van Dijk, Mohamed Salah and Trent Alexander-Arnold could still leave for free in 2025, but the latter recently dropped a major hint that he would be prepared to sign a new deal if the club can match his trophy ambitions.
Meanwhile, Salah memorably caused a stir after the Man United win when he said that he was playing the 2024-25 season as if it was his last at Liverpool, although the Egyptian is thought to be keen to stay on.
Similarly, captain Van Dijk has suggested that he wants to play at least two more seasons at Liverpool, who begin the defence of their EFL Cup title at home to West Ham United on Wednesday night.