Liverpool and Manchester City are two of the biggest clubs in world football and their rivalry in recent years has grown into something more than just two teams chasing trophies. It has become a battle of ideas, a battle of money, a battle of personalities, and a battle of power between Jurgen Klopp’s Liverpool and Pep Guardiola’s Manchester City. But what nobody knew until now is that behind the scenes, during the summer of 2024, there was an idea so bold, so sensational, and so shocking that if it had happened it would have shaken the Premier League to its very core. Liverpool quietly explored the possibility of a swap deal with Manchester City, one that would have seen Luis Diaz move to the Etihad while Julian Alvarez would head to Anfield. A straight swap, two attacking stars switching sides, two of the most talented South American players of their generation trading shirts in the most dramatic of fashions.
It all started because Luis Diaz, the Colombian winger who had been a hero at Anfield since his arrival from Porto, began to feel the pull of Pep Guardiola’s City machine. He had been linked to the Premier League champions before and in 2024, when whispers reached him that Guardiola admired his style, Diaz was tempted. He told Liverpool he would like to join City if the opportunity came. For a player who had given his heart in big matches for Liverpool, including Champions League nights and important Premier League battles, this was no small decision. It was a clear sign that he wanted a new challenge, and not just anywhere, but with Liverpool’s biggest domestic rivals.
Liverpool, never wanting to lose face in such matters, decided to think creatively. If Diaz was going to leave, why not try and get something extraordinary in return? And so the Reds made an enquiry about Julian Alvarez. Alvarez, the young Argentine forward who had already won a World Cup with Lionel Messi and had built a reputation as one of the most versatile and intelligent attackers in Europe, was seen by Liverpool as the perfect replacement. He could play across the front line, he had energy, work rate, finishing, and a mentality that Klopp admired. Liverpool floated the idea: Diaz to City, Alvarez to Liverpool. It would have been one of the biggest swap deals in Premier League history, something that fans and pundits would have talked about for decades.
But Manchester City were not interested. Pep Guardiola and his directors quickly shut down the idea. There was no way they were going to strengthen their biggest rival by sending Alvarez to Anfield. To City, Alvarez was too valuable, not just for his goals and assists, but for the spirit he brought to the dressing room. Even though he was not always a guaranteed starter with Erling Haaland leading the line, Alvarez had a key role at City. He pressed, he linked play, he gave Guardiola tactical flexibility. Selling him to Liverpool would have been unthinkable. So the swap died almost as quickly as it was born.
Instead, Alvarez got his move to Atletico Madrid, in a deal worth £82 million. Diego Simeone wanted him as the face of a new-look Atletico attack, and the Argentine forward responded with fire. In his first season in Spain, he scored 29 goals in 57 games across all competitions, instantly becoming a fan favourite in Madrid. It was a statement that City had not misjudged his value, and also a reminder of what Liverpool had missed out on.
As for Luis Diaz, his story also took a twist. The Colombian never got his move to City, but he did leave Liverpool in the summer of 2025. Bayern Munich came calling with a £65.5 million deal, and Diaz accepted the challenge of the Bundesliga. In Germany he started fast, scoring two goals and providing two assists in his first two matches for the Bavarian giants. His explosive style fit perfectly with Bayern’s direct football, and he became an instant hit with their fans. For Diaz, the dream of playing for City was gone, but he had still managed to secure a top move and a fresh chapter in his career.
For Liverpool, the episode was both a missed opportunity and a lesson. They had lost Diaz, but they had failed to get Alvarez in return. The thought of what might have been haunted some supporters. Imagine Alvarez in a red shirt, leading the line at Anfield, combining with Mohamed Salah, Darwin Nunez, and Dominik Szoboszlai. Imagine the goals, the energy, the pressing. That vision never came true, and instead Liverpool had to look elsewhere to rebuild their attack.
The situation also highlighted the growing tension between Liverpool and City at the transfer table. In the modern era, rivalries are not only fought on the pitch, but also in boardrooms and in transfer negotiations. City had no interest in handing Liverpool a weapon like Alvarez. Liverpool, for their part, had tried to test City’s resolve. It was another battle in a war that has gone on for years, from title races that went down to the final day to disputes over refereeing decisions, to questions about financial power and fair play. This transfer saga was just another chapter in that long rivalry.
The fans, too, had their opinions. When the Telegraph revealed the story, shockwaves went through both sets of supporters. Liverpool fans were divided. Some were angry that Diaz had even considered joining City, seeing it as a betrayal of the club’s values and of the fans who adored him. Others accepted that players today are ambitious and that the lure of Guardiola’s City was understandable. City fans, on the other hand, laughed off the idea of losing Alvarez to Liverpool. For them, it was proof of how far Liverpool had fallen, that they would even dare to ask for such a deal. And Atletico Madrid fans simply celebrated that they had secured a world-class striker in Alvarez.
What makes the story even more fascinating is the context of both clubs. In 2024, Liverpool were in a period of transition. Jurgen Klopp was trying to rebuild after losing key midfielders like Jordan Henderson and Fabinho, and the team was struggling to reach the heights of 2019 and 2020. Signing someone like Alvarez would have been the perfect way to spark a new era. City, meanwhile, were at the peak of their powers, having won the Treble with Haaland and Kevin De Bruyne leading the way. They were not in the business of helping rivals catch up.
The irony is that a year later, in 2025, both Diaz and Alvarez are no longer in the Premier League. One is in Germany, the other in Spain. The dream swap never happened, and English fans can only imagine what it would have looked like. But the echoes of that failed deal remain, and they say a lot about where Liverpool and City stand today.
Liverpool now move on with new challenges. They have Burnley next in the Premier League, a game they must win to keep momentum under new boss Arne Slot. City, meanwhile, face Manchester United in the derby, a game that always brings drama and tension. Both clubs continue to fight in their own way, but the ghost of that proposed swap deal lingers in the background, a reminder of a summer where the impossible almost became possible.
The story of Diaz and Alvarez will live on in football gossip for years. Fans will debate it, journalists will bring it up whenever Liverpool and City face each other, and maybe even the players themselves will one day speak about what really happened. Did Diaz truly want City more than anything? Did Alvarez ever think about Liverpool? Did Guardiola ever consider it for a second? Did Klopp dream about having Alvarez in his team? These are questions that make football what it is: full of drama, rumours, near-misses, and stories that define eras.
And so the saga becomes part of football folklore. Luis Diaz, the winger who dreamed of City but ended up in Munich. Julian Alvarez, the striker who could have been Liverpool’s new hero but instead lit up Madrid. Liverpool and City, two giants who circle each other endlessly but never share their toys. It is a story of ambition, rivalry, rejection, and what could have been.
