According to Balague, the former Atletico Madrid striker used Liverpool's interest in signing him in the summer of 2013 to earn a new contract at the Spanish club.
It was at the same time that Arsenal were sniffing around Luis Suarez and had offered £40,000,001 for the Uruguayan striker, now at Barcelona.
Liverpool had actually made a bid for Costa at the time, according to a BBC report. The Reds' £21 million bid was meant to have triggered the striker's buyout clause, but after the bid a move never really materialised.
Balague claims that Costa's agent, Jorge Mendes, had told the striker Chelsea would come for him the following summer.
Two weeks after the BBC reported that Liverpool had tabled a bid, they then reported that the Brazilian-born Spain international had in-fact signed a new contract with Atletico.
It's frightening to think how lethal Liverpool's attack would have become had Costa and Luis Suarez both been playing in the same team.
Costa, now at Chelsea, has had a phenomenal start to life in the Premier League scoring nine goals in seven league games.