Liverpool have finally contacted Bayern Munich over Thiago and are poised to land the midfielder in a £27m, claims The Athletic.
Thiago has been heavily linked with a move to Anfield all summer after entering the final 12 months of his existing deal.
The Spain international has turned down Bayern's offer of a new deal and made it clear he wants to join Liverpool and play under Jurgen Klopp.
Liverpool have been reluctant to move for Thiago despite his obvious class owing to issues over his age.
Thiago will turn 30 towards the end of this season and Liverpool have made a point in recent years not signing players coming towards the end of their career.
The Premier League champions were also hoping to pay much less than Bayern's £27m asking price and any move previously hinged on Georginio Wijnaldum's future.
📊 League ratings last season
— WhoScored.com (@WhoScored) September 17, 2020
🏴 Jordan Henderson ©️ - 7.15
🇬🇳 Naby Keita - 6.94
🇧🇷 Fabinho - 6.89
🇳🇱 Georginio Wijnaldum - 6.81
🏴 Alex Oxlade-Chamberlain - 6.63
🏴 James Milner - 6.56
🇪🇸 Thiago Alcantara - 7.47
📈 Liverpool's midfield is about to level up pic.twitter.com/2NnWl5854t
Wijnaldum has also entered the final 12 months and has been linked with Barcelona but Liverpool have now decided they want Thiago regardless whether he stays or goes.
Manchester United have also discussed a potential move for Thiago with the midfielder's representatives but are not expected to rival Liverpool for his signature.
Thiago has spent the last seven years with Bayern and won everything on offer with the German club, including the Champions League last season.
Of the 144 players to attempt at least 25 dribbles in the Bundesliga last season, Thiago had the best dribble success rate in the division (85.5%).