Liverpool are reportedly haggling with Bayern Munich over a transfer fee for Thiago Alcantara after agreeing personal terms with the midfielder this week.

The Spaniard, whose contract ends next summer, was close to agreeing an extension with Bayern last month. However, he walked away in the final hour of negotiations.

As such, Bayern are looking to sell up to avoid losing him on a free, with Liverpool reportedly keen.

Boss Jurgen Klopp is reportedly a firm admirer of Thiago's and is keen to bring a player of his ilk to Anfield. And Bild now claims the feeling is mutual ahead of the transfer window re-opening later this month.

What's more, the German publication adds that the Reds have agreed initial terms over a deal.

But the two clubs are far apart on a transfer fee. Liverpool have submitted an initial £23 million bid, with Bayern looking to earn £36 million for the Barcelona star.

Speaking earlier this month, Bayern boss Hansi Flick said he was hopeful of Thiago staying at the club.

He said (via the Daily Mail): "The thing is, I always have hope. I'm actually always very positive about things.

"I also know, of course, that when you're at a certain age and you've already played in the Spanish league with Barcelona and in the Bundesliga with Bayern Munich, you feel the need to experience another big league.

"That is quite normal and that is also human. I'm trying my best to make sure Thiago stays here and that you can convince him to stay.

"But that's one thing that time will show. We still have the Champions League ahead of us now and we have a lot of plans, also together with him."

- TEAMtalk media