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Fofana was one of a small handful of backup options on Bayern’s list in the event the Luis Diaz move fell through.
Luis Diaz is set to join Bayern Munich after the German champions agreed a deal worth €75m (£65.5m) including add-ons with Liverpool.
Liverpool have reached a €75M agreement to sell Luis Diaz to Bayern Munich, paving the way for a €120M move for Newcastle striker Alexander Isak.