The Daily Mail says Diaz underwent his medicals in Argentina on Saturday evening as he closed on a £37million transfer from Porto.
The 25-year-old Colombia international, known as 'noodle' because of his wiry frame, is expected to sign a five year contract once he gets the all clear.
Diaz will feature for Colombia against Argentina later this week in a World Cup qualifier in Buenos Aries.
Liverpool made their move on Thursday after Tottenham's bid for the winger established that Porto would sell below Diaz's £66m buy out clause.
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