Bayern Munich midfielder Thiago Alcantara has agreed personal terms with Liverpool, it has been revealed.

BILD says Thiago has agreed personal terms with Liverpool after Jurgen Klopp gave the go-ahead for the transfer.

But the Premier League champions still need to agree a fee with Bayern Munich, with the Reds reportedly willing to pay £18million, while the Bundesliga giants want £36m for the midfielder.

Thiago won the German league and cup double with Bayern this season, but is now believed to be keen to move on after winning the title in each of his seven Bundesliga seasons.

The 29-year-old has also won four cups in Germany, and is ready for a fresh challenge having also enjoyed success with Barcelona.