Liverpool fear €57.6M superstar will now join Real Madrid instead
The 23-year-old is absolutely rapid and would be an exciting addition to Jurgen Klopp's developing squad.
The German added four midfielders to his squad in the summer to address issues that crept into the squad, culminating in a fifth place finish to the 2022/23 Premier League season.
The Reds have already bettered their start to last season by quite a margin but like with any team striving to be the most elite, there are areas of his side that could be improved with transfers.
Left-back could be one Liverpool look to address either in the 2024 summer transfer window.
Liverpool want Alphonso Davies after monitoring Bayern contract situation
This leaves the German club vulnerable to losing him as a free agent in 18 months, leaving the summer transfer window and the 2025 January window as the only opportunities to recoup a fee for his services.
Liverpool reportedly "requested updates" on his situation at Bayern in October but it all may for naught if he is destined for a move to the Santiago Bernabeu instead of Anfield.
It would cost around €57.6 million to sign Davies in 2024 or free in 2025 if he runs his contract down at the Allianz Arena.
What has Davies agent said about transfer speculation over his client's future?
Davies's agent, Nedal Huoseh, has both stoked the transfer rumours and moved to end speculation.
In October, Huoseh told 365 Scores, via Marca: "I can't talk much about this.
"We were talking at the beginning of the summer with the sporting director and the former general director, but everything was put on hold.
"There is interest from many teams. I read the same articles on the internet, but in the end we will see what happens in the coming months
"I am sure that Real Madrid can be one of the clubs that would like to sign Davies, along with several English Premier League clubs. They all want to have one of the best left-backs in the world."
90 Min claim Chelsea, Liverpool and Manchester City are all interested while PSG are interested too.
Why do Liverpool want to sign Davies?
In all likelihood, if he does not agree a new contract at Bayern, they will look to facilitate a bidding war. Davies is a top player and one that would improve a lot of lineups at the top level.
There aren't many top class left-backs around and with Davies' talent in attacking situations, he is one of the best options out there to take Liverpool's side to a new level if there are any reservations over the current options at Anfield.
Andy Robertson will be 30 in March and Kostas Tsimikas is yet to fully prove he is a top level fullback and so difficult questions will need to be asked and answered at Liverpool.
Davies would be the third player to join Liverpool from Bayern Munich in three years if they pursue interest in the Canadian after signing Thiago Alcantara in 2020 and Ryan Gravenberch this year.
In other Liverpool/Bayern Munich transfer news...
Could you imagine what it would be like if Klopp was allowed to sign all three?!
It's obviously unlikely to happen but the excitement factor at Anfield would skyrocket.