The Reds aren't expected to make any high-profile signings unless a significant member of the team departs, and manager Jurgen Klopp and sporting director Michael Edwards are confident the title-winning squad will remain intact.
Thiago, 29, looks certain to leave the Bundesliga champions after Bayern CEO Karl-Heinz Rummenigge confirmed the midfielder was keen on seeking a new challenge elsewhere.
There's one year left on the Spaniard's terms at the Allianz Arena, and Bayern has reportedly appraised his value at £30 million. It's understood that the player's age and transfer value could also be impacting Liverpool's decision, as the side prioritizes long-term value for its money.
Liverpool withdrew their interest in Timo Werner last month after the Merseyside outfit balked at the former RB Leipzig striker's asking price. The German international eventually agreed to a £47.7-million move to Chelsea.
The Premier League champions have only made one significant addition since summer 2018, luring Japanese international Takumi Minamino to Anfield from RB Salzburg for a £7.25-million fee in January 2019.