The initial fee is £20m but add-ons could take this up to a total of £27m. Those add-ons are based on appearances and Liverpool winning trophies.
It had initially looked like any deal would be dependent on the future of Gini Wijnaldum, who is also in the final year of his Anfield contract, but Liverpool have decided to make their move now.
Thiago helped Bayern win the treble last season, as they beat PSG in the Champions League final last month in Lisbon.
However, in July Bayern chairman Karl-Heinz Rummenigge revealed that Thiago had told the club that he wanted a new challenge.
Rummenigge admitted that talks between the player and sporting director Hasan Salihamidzic over a new deal had broken down as he wished to leave Germany and said the club would accept a “reasonable price” for him.
The Spanish international started his career at Barcelona and was handed his debut for the Catalan side by Pep Guardiola in 2009 at the age of 18.
He was an unused substitute as Barca beat Manchester United in the Champions League final the following season.
Thiago joined up with Guardiola again in 2013 when the new Bayern boss took him to Bavaria where he went on to win seven Bundesliga titles and four DFB-Pokal cups.
“Liverpool have got five or six midfield players – they rotate well because they need energy in that position – but a lot of the players are pretty similar.
“Thiago would be something different – less in energy but more technical – and I think he would be a really good addition.
“Liverpool are world-class at the top end of the pitch, world-class in terms of their defence and goalkeeper; I think they’re top-class in midfield.
The commentator was just saying how comfortable Paris Saint-Germain were looking when it happened. “They are quite happy for Bayern to have the ball in their half,” he said. But it was at that precise moment that Thiago Alcantara weaved his magic, firing a crisp pass between the lines.
The ball was in the back of the net seconds later. The goal was enough to win the 2020 Champions League for Bayern Munich and while scorer Kingsley Coman was the official man of the match, the role of Thiago in the team’s triumph escaped absolutely no one.
At 29 and reluctant to sign a new contract, Bayern realised they might have to sell. Liverpool are now ready to pounce and it is easy to see why the move might appeal. Jurgen Klopp’s side can do almost anything. But they cannot do what Thiago can do…
His CV tells the story. At 29 years old, Thiago has racked up 11 league titles with Barcelona and Bayern Munich. Since his league debut, he has only ever missed out on the domestic crown once – back in 2011/12.
If that wasn’t enough, what else interests Jurgen Klopp? The reduced fee from his dwindling contract is undoubtedly attractive – but so too are his strengths. In particular, his ability to press opponents.
Only Wolfsburg’s Maximilian Arnold reclaimed possession in the middle third more than Thiago in the Bundesliga last season – and he played 1,055 minutes more than the Spain international.
Thiago played only 106 minutes in the Bundesliga after the restart due to a groin injury
The Bayern midfielder would also offer an improved dimension to Liverpool’s existing midfield tranche: the ability to run with the ball. His frequency of completed dribbles is outstanding, given the fact he patrols central areas of the pitch.
In addition, the 29-year-old retains possession, despite his forward-thinking drive and above-average number of passes attempted – clocking a passing accuracy of 90.5 per cent, which ranks 21st in the league.
Thiago provides unrivalled pedigree, with 12 years’ experience at powerhouse clubs and nine with Spain, while fitting the mould for a midfielder under Klopp.
The summer transfer window will run for 10 weeks from July 27 and close at 11pm on October 5.
A domestic-only window for trades between the Premier League and EFL then runs from October 5 and closes on Friday, October 16 at 5pm. Follow all the news and analysis on Sky Sports News and across Sky Sports’ digital platforms, including with our dedicated Transfer Centre blog.
You read correctly. Do not miss your chance to scoop £1m for free in this week’s Super 6 round. Play for free, entries by 3pm Saturday.
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