Liverpool reportedly risk missing out on Bayern Munich midfielder Thiago Alcantara if they do not reduce their playing squad.

For a number of weeks, the Premier League champions have been regarded as the favourites to secure a deal for the Spaniard, who wishes to take on a new challenge.

However, while signing the playmaker for a fee in the region of £30m appears to be value for money, it appears that the Merseyside outfit must bide their time before finalising a transfer.

According to Kicker, boss Jurgen Klopp has been informed that he must first part ways with at least one player.

Despite their recent success, Liverpool are still feeling the financial ramifications of the coronavirus pandemic, which was a factor in them missing out on Timo Werner.

Liverpool have already sold Dejan Lovren, potentially putting Klopp in a position where he may have to prioritise a new centre-back.