The Liverpool hierarchy are understood to ideally want a deal wrapped up before the start of the World Cup, but negotiations remain at a primary stage with agents and significant competition persists for one of Europe’s most highly-rated young attackers.
PSG are currently viewed as Liverpool’s main rivals for the 19-year-old, while Bayern Munich have also been linked with the player in recent weeks.
RB Leipzig would prefer to keep Diomande for at least another season but could consider offers around €100million for the Ivory Coast international, who is under contract until 2030.
Liverpool’s interest has intensified amid the exit of Mohamed Salah and the club’s desire to add greater pace and unpredictability in wide areas ahead of next season.
Sources close to the situation believe Liverpool view Diomande as one of the standout attacking profiles in the market due to his age, versatility and ceiling for development.
The club’s recruitment team have followed his progress closely throughout the season and consider him capable of adapting quickly to Premier League football.
Diomande enjoyed a breakthrough campaign in Germany, registering 13 goals and 10 assists in 36 appearances across all competitions after arriving from Leganes last year.
The teenager is regarded internally at Anfield as a player capable of fitting into their attacking line-up due to his acceleration, dribbling ability and ability to operate on either flank.
PSG remain firmly in the race, however, and are monitoring the situation closely as they assess potential changes to their attacking options this summer.