Liverpool are closing in on a deal to sign Spanish midfielder Thiago Alcantara from Bayern Munich for £27m.

Thiago, 29, joined the German giants from Barcelona in 2013 and played in last season's Champions League final victory over Paris St-Germain.

Talks are ongoing between Liverpool and Bayern over the player, who has one year left on his contract.

Thiago would be Reds boss Jurgen Klopp's second signing of the transfer window after left-back Kostas Tsimikas.

Thiago started his career at Barcelona and was heavily linked with a move to Manchester United when David Moyes replaced Sir Alex Ferguson in 2013, but the move did not transpire and he went to the Germany instead.

As well as the Champions League, he has won seven consecutive Bundesliga titles, four German Cups and the Club World Cup with Bayern.

More to follow.