The Ivory Coast star has become one of Europe's most sought-after players after he 12 goals and a further nine assists across the 33 matches he played in the Bundesliga last season for RB Leipzig.
Liverpool had been willing to pay £86m, but Leipzig want significantly more for the Ivory Coast international who they will not sell less than around £112M according to reports.
Transfer guru Fabrizio Romano gave an update on the deal on Monday morning as Liverpool prepare to miss out on the 19 year old.
“Paris Saint-Germain in talks with RB Leipzig to find a solution for Yan Diomandé deal.
“Leipzig insist on fee higher than €100m to let Diomandé leave now, or offer chance for different price but leaving Yan in Germany on loan for one season.
“PSG want Diomandé asap.”
The French club have a contract agreed with Diomande until 2031 as per Sky Sports, it is now about the cost of the deal and whether Leipzig will budge on the price.
Diomande is currently at the World Cup with Ivory Coast and is likely to feature when they face Norway in the round of 32 in Arlington, Texas on Tuesday, a game where scouts will watch him closely once more and feed back date to both PSG and Liverpool.