According to reports in France, PSG have made the early step of submitting a bid for the Spaniard as they aim to bolster their ranks in midfield.
Various reports across the world suggested Liverpool had even agreed personal terms with Thiago, but PSG have emerged as late suitors with an offer that meets Bayern Munich's demands.
They have supposedly tabled a bid of £27 million for Liverpool's longstanding target. PSG believe their bigger financial muscle could help fasten the Thiago deal before Liverpool react.
Liverpool's £23 million offer bettered by PSG
Liverpool target Thiago joined Bayern Munich from Barcelona back in 2013, and has gone on to win seven consecutive Bundesliga titles with the club. The midfielder has emerged as one of the finest of his kind in modern-day football, amassing a total of 231 appearances for the German powerhouse.
Besides, he has also also lifted seven other domestic trophies with Bayern Munich.
However, when it seemed like Thiago would sign an extension and finish his final few prime years at the Allianz Arena, he took a U-turn and decided to look for a new challenge.
Liverpool were believed to have instantly pounced on the opportunity, having contacted Thiago before any other club.
Bayern, however, had left the door open for him to pen a new contract, until chairman Karl-Heinz Rummenigge confirmed that Thiago would leave the club.
He did not reveal if he is destined to sign for Liverpool, as he stated:
"[Bayern sporting director] Hasan [Salihamidzic] had talks with Thiago. Curiously they were always very positive. But he told Hasan some time ago that he wants to do something new to finish his career. So far no club has contacted us. We don't know if he's settled things with a new club."
Liverpool submitted an offer close to £23 million, which was short of Bayern Munich's asking price.
The Reds are in need of a midfielder after Adam Lallana left for Brighton and Hove Albion, while Xherdan Shaqiri is also poised to depart. However, due to the economic implications of the COVID-19 pandemic, they are not expected to line up big-money moves.
On the contrary, PSG are well-placed in terms of their financial flexibility, as demonstrated by the £53 million capture of Mauro Icardi.
Liverpool should be able to add the extra few millions, but Thiago's decision may hold key to where he lands. PSG are on the lookout for a central midfielder as well, as they have previously been linked with Sergej Milinkovic-Savic among other players.
While Liverpool's season is done and dusted, PSG have all to play for against Atalanta in the Champions League quarter-final.
Published 02 Aug 2020, 15:27 IST