Liverpool ‘set to sign Thiago Alcantara after agreeing £27.4m transfer fee with Bayern Munich’

Liverpool are on the cusp of signing midfielder Thiago Alcantara from Bayern Munich after the two clubs agreed on a transfer fee.

The Premier League champions have been engaged in discussions with the Champions League holders over 29-year-old playmaker who has one year left on his Bayern contract.

And according to The Athletic, a breakthrough has developed with two clubs settling on a £27.4million deal.

Talks have gathered pace since Monday with Bayern keen to conclude business before they begin their Bundesliga campaign – which is at home to Schalke on Friday night.

It is understood Liverpool would pay an initial fee of £20m with the rest to follow in add-ons.

Thiago is yet to agree personal terms with the Reds but those should be straightforward.

Speaking last week, Liverpool manager Jurgen Klopp had previously tried to play down the speculation.

‘It is nice that we are linked with him but that is pretty much all, really,’ he said.

That came amid claims a potential move for the Spain international was being held up by uncertainty over the future of Liverpool midfielder Georginio Wijnaldum.

The Dutchman, who is in the final year of his contract at Anfield, has been linked with Barcelona.

Liverpool, however, have decided to make their move for Thiago now, with the issue not appearing dependent on whether Wijnaldum leaves the club or not.

Bayern manager Hansi Flick said at his press conference on Thursday: ‘Thiago is an exceptional player who spent seven hugely successful years here.

‘He’s a wonderful person and an outstanding professional. It was very emotional today when he said goodbye to us all.’

Thiago would be Liverpool’s second addition of the summer after the signing of Greece left back Kostas Tsimikas.

Thiago joined Bayern from Barca in 2013 and was in the side that won the Champions League final last month against Paris Saint-Germain.