The Spanish-born winger is regarded as one of the top young talents in Italian football, despite having only made a handful of appearances for the Rome-based side.
Diao is a product of Barcelona’s famed youth set-up, but left the club in 2011 in a bid to secure a smoother passage into senior first-team football.
Brendan Rodgers is believed to be monitoring the 18-year-old as he plots his moves in the January transfer market.
The Northern Irishman is known for his desire to secure fresh, young talent and he sees the teenager as the ideal man to help with his long-term plans at Anfield.
Diao – who is of Senegalese descent – impressed for Lazio’s reserve side and has since graduated to the senior set-up, for whom he has made league and Europa League outings.
The Biancocelesti are keen to keep the youngster, but may be tempted by a lucrative offer for his signature.
Prior to his move to Lazio, Diao was the subject of rumoured interest from Real Madrid and Manchester United, with the duo said to have been keen on swooping for his signature.
Should Liverpool look to sign another youngster? Or is it time for home grown talent to be given a chance?
Have your say below!
[cat_link cat=”liverpool” type=”grid”]