Liverpool are closing in on the landing of Bayern Munich midfielder Thiago Alcantara, according to the latest reports in Spain.

The 29-year-old star, who has just ended his seventh campaign with Bayern Munich, will be out of contract with the German giants next summer.

According to a Spanish sports newspaper Sport, an agreement between Liverpool and the player is already in place and the newly crowned Premier League champions must now negotiate a transfer sum with Bayern.

The report claims that Die Roten board are asking for a €35 million (£31.5m) transfer fee for the Spain international.

Liverpool, meantime, want to avoid paying in one lump fee and their preference is to fund the move in instalments.

Alcantara has made 35 appearances for Bayern this campaign but has only featured twice since the Bundesliga restarted because of a groin problem.

However, the midfielder is now fully fit and is expected to play in his side’s DFB-Pokal final against Bayer Leverkusen on Saturday.

Meanwhile, Jurgen has indicated that Liverpool’s plan is to give more opportunities to their academy players next campaign instead of completing several new signings.

‘We want to strengthen this squad and this squad is strong,’ the Liverpool head coach said this week.

‘The problem with a strong squad is how do you improve a strong squad on the transfer market?

‘It works with money, obviously, that is possible. But it never works only with money. You have to be creative and we try to be creative. We try to find solutions internally.

‘And there is still a lot to come. We have three or four players who can make big, big steps. All players can make steps and that is the pressure we make as well, internally.’