The Premier League champions believe Diaz is worth at least €100m (£87m).

Newcastle United have a strong interest in Wolves' 25-year-old Norway forward Jorgen Strand Larsen as a possible replacement if Sweden striker Alexander Isak, 25, decides to leave this summer.

But Saudi side Al-Hilal are also currently preparing a bid, understood to be more than £130m, for Isak after he was omitted from Newcastle's squad for their pre-season tour of Singapore.