According to talkSPORT, Bayern are expected to return to the negotiation table with an improved offer but face a tall task to lure the 28-year-old from Merseyside.
It is claimed that Liverpool are using the Bundesliga champions’ willingness to pay £86m to sign Florian Wirtz from Bayer Leverkusen against them.
If Bayern increase their bid towards that figure, Anfield bosses would consider a sale and almost certainly re-invest in a replacement for the Colombian.
The report adds that preliminary talks between Liverpool and Real have already taken place over a potential stunning deal for Rodrygo.
For the latest breaking stories and headlines, sign up to our Daily Express MUFC newsletter, or join our WhatsApp community here.
The 24-year-old’s future is up in the air after Xabi Alonso’s arrival at the Bernabeu, having been snubbed during the FIFA Club World Cup.
Rodrygo registered 14 goals and 10 assists in 51 appearances for Real last season, playing a crucial role under Carlo Ancelotti.
He would be a headline-stealing replacement for Diaz, whose desire to pursue a new challenge could be crucial to any deal going through.
Liverpool are also said to retain an interest in Gordon after making a move to sign the former Everton winger last summer.
The 24-year-old has scored 22 goals and provided 23 assists in 106 games for Newcastle since leaving Goodison Park in a £45m deal.
TalkSPORT also state that Liverpool have, incredibly, internally discussed wantaway Manchester United forward Marcus Rashford as an option.
However, that shell-shocking deal is considered highly improbable for obvious reasons. Rashford is also believed to prefer a move overseas.
Liverpool’s current priority is signing a new striker to replace Darwin Nunez, who is still expected to leave before the summer deadline.