All the latest summer transfer news from Anfield...
The French midfielder, 28, was released by Arsenal earlier this summer after a spate of injuries, and joined Ligue 1 side Marseille earlier today on a free transfer.
However, reports are emerging that Liverpool also tried to sign Diaby, and even offered the player a pay-as-you-play deal - only for Diaby to reject that offer, as he had already agreed to join Marseille and wasn't willing to turn his back on the deal.
Elsewhere, the Daily Mail report that Liverpool are close to signing Internacional midfielder Allan, after the 18-year-old took part in training at the club's Melwood base.
The Brazilian is reportedly nearing a £500,000 move to Merseyside, where he would join up with compatriots Philippe Coutinho and Roberto Firmino.
Finally, Liverpool have confirmed on their official website that they have allowed defender Andre Wisdom to leave the club on another season-long loan deal, this time to Norwich City.
The 22-year-old spent last term on loan at West Brom, and has been sent straight back out again, joining the newly-promoted Canaries until next summer.