After three years at AC Milan, Diaz is now back at the Bernabeu and proving to be an asset to the first-team squad for the first time in his career.
The 24-year-old has contributed nine goals and three assists in all competitions this campaign, including chipping in with several noteworthy actions since the start of February.
When every player is fit, Diaz may find himself on Carlo Ancelotti's substitutes' bench, yet he has still managed to make 16 starts and 17 substitute outings in all competitions.
However, while the former Manchester City youngster has seemingly done enough to keep his spot in the team, the likely arrival of Kylian Mbappe will only push him further down the pecking order.
Despite that, HITC claims that Diaz and his representatives are currently not angling for a transfer away from Los Blancos at the end of the season.
Nevertheless, that is not to say that opportunities may not arise for the playmaker, who has recently switched his international allegiances from Spain to Morocco.
The report claims that Liverpool and Man United are each toying with the idea of making an approach for Diaz during the summer transfer window.
While Liverpool are already well-stocked for creative talent, the departure of Jurgen Klopp as manager will lead to new ideas arriving at Anfield once a replacement is secured.
Man United also have the likes of Bruno Fernandes and Mason Mount who can provide similar qualities to Diaz, yet new minority owner Sir Jim Ratcliffe is preparing to make his own mark in his role of spearheading footballing operations.
Arsenal, Chelsea and Tottenham Hotspur are also said to be
Read on sportsmole.co.uk