Bayern Munich are threatening to price Thiago Alcantara out of a move to Liverpool.

The midfielder has reportedly agreed terms over a four-year contract with the Reds and identified a house on Merseyside.

However, the Guardian says while talks over a fee have now commenced, the two clubs are well apart in their valuations.

Bayern are seeking over €35m to sell the Spain international, while Liverpool are reluctant to go higher than €25m.

Watching on with interest are rival suitors PSG and Manchester City.