The rumour mill has been churning relentlessly, with player after player being tantalisingly touted with a move to L4, only for the promising reports to fade to nothing a few days later.
Here's everything you need to know about the latest player to be linked with a move to Anfield:
What's the story?
According to Portuguese outlet Record, the Reds are set to hijack Spurs' move for the Colombia international, after talks between the north London club and the player stalled.
The report boldly claims that Diaz "will be a Liverpool player" and that the Reds have already made an offer which, with the addition of performance-related bonuses, could be as high as £50m.
Liverpool are said to be a more enticing option than Spurs, with the opportunity to play in the Champions League and challenge for the Premier League title far more likely in the short term.
It is suggested that it is still unclear whether the 25-year-old would join up with Jurgen Klopp's side this month, or whether he would wait until the summer, following the end conclusion of Porto's Premeira Liga campaign and their run in the Europa League.
Why is Luis Diaz in such high demand?
The Colombian sensation has been dazzling in the Portuguese top tier for three seasons, following a move from Junior back in 2019.
This season, he's already racked up 14 goals and four assists, and is exactly the kind of dynamic, attacking player that would thrive in a Liverpool shirt.
A demon dribbler with rapid pace and an enviable technical ability, Diaz could light up the Premier League and be a seriously valuable asset for any side who can prise him away from Porto.
How likely are Liverpool to sign the player?
It's worth noting that yesterday, the same outlet were claiming the player was heading to Manchester United, so the latest story involving Liverpool should probably be taken with a pinch of salt.
That said, they do seem to be onto something with the suggestion that Diaz isn't exactly champing at the bit to join Spurs, with the deal taking some time to make any further progress - no smoke without fire, and what have you.
Furthermore, Record aren't the only outlet to report the news, with Sky Sports backing up the claims earlier this morning.
Certainly, he fits the description of the kind of player who could galvanise Liverpool's front line pretty perfectly, and could give them a serious boost in the title race.
Spurs are having a bit of a shocker this month, having already missed out on Wolves' Adama Traore, who is closing in on a return to his boyhood club Barcelona. The north Londoners, therefore, will fight tooth and nail to sign Diaz, and try to emerge from the window with at least one of their targets.
If Liverpool's rumoured interest is genuine, they'll still face some serious opposition for the player's signature, that's for sure.