Luis Diaz linked with shock Liverpool exit in stunning swap deal for "electric" Arsenal and Chelsea target

Liverpool star Luis Diaz has been linked with a shock move to AC Milan, as part of a swap deal for Rafael Leao, according to a fresh report.

The Reds have endured a torrid season, marred by poor form and a string of injuries. The club are currently languishing in seventh place in the Premier League, some nine points from the top four.

Moreover, they have long been eliminated from both domestic cups, while their hopes of reaching the Champions League quarter-final were dashed last week as Real Madrid dismantled Jurgen Klopp’s side 5-2 at Anfield in the first leg of a heavyweight last-16 tie.

Diaz in particular has been greatly missed this term, with the Colombian international having sustained a knee injury during a 3-2 defeat at Arsenal back in October.

Offering an update on his recovery, the 26-year-old suggested earlier this month he could be back in action for next month's Champions League second-leg tie with Real Madrid.

However, if reports are to be believed, the winger, who was described as 'electric' by The Athletic, could see his Liverpool career come to an abrupt end in the coming months.

Diaz and Leao swap deal?

Italian publication Calciomercato has linked Leao with a move to Liverpool, in a deal which would see Diaz head in the opposite direction.

The outlet claimed Leao is “ever closer” to leaving Milan, with his current deal set to expire in 2024.

Indeed, with contract talks said to be “negative”, Milan could allegedly “listen to offers” for the Portugal international in an attempt to avoid losing the winger for free next summer.

Liverpool are allegedly one of the sides interested in the 23-year-old, with the report adding that Diaz could be used in an attempt to “snatch Leao”. Klopp is said to “like” the player, paving the way for a “sensational exchange” between the two sides.

However, Calciomercato also claimed Milan would prefer a “cash-only proposal” rather than a swap deal and are said to value the player between €120million (£105million) and €150million (£131million).

The Reds could face competition from Arsenal, Chelsea and Manchester United however, with each having also linked with the forward in January.