The 22-year-old had a breakout season for LaLiga side Osasuna, scoring seven goals and providing five assists in his 36 games.
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Munoz earned a call-up to the Spain squad for the World Cup and looked set to join Newcastle for a fee of €30 million.
Now, according to Fabrizio Romano, Liverpool have come in and hijacked the deal, paying his €40 million release clause.
Personal terms have already been agreed and Munoz is now set to become a new attacking signing for Andoni Iraola’s side.
