Liverpool are continuing talks with Cerro Porteno for young attacker Sergio Diaz.

The 16 year-old Paraguayan whizkid has been a star at this month's U20 South American Championships.

Liverpool and Manchester United were linked with Diaz last week.

And it's emerged over the weekend that Liverpool are negotiating terms with Cerro Porteno over the youngster's transfer.

Cerro Porteno rate Diaz, already a first team regular, at around £8 million.

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