Spurs put months of work into a swoop to land Diaz from FC Porto and with just days left in the January transfer window were poised to do the deal.
Liverpool stole in though, matching Tottenham’s offer and Diaz was convinced to go to Anfield to play under Jurgen Klopp, with Champions League football an added lure.
Spurs supremo Daniel Levy has been left furious by the development and he is so angry that it is claimed relations between the two clubs’ owners may have been seriously damaged.
It is claimed that the situation could now lead to a period of hostility between the two Premier League sides.
Liverpool are due to play host to Tottenham in May and the game could be pivotal to both clubs’ ambitions in the Premier League this season.
The Reds’ new signing Diaz could also feature and if he helps to inflict defeat on Spurs then more salt will be rubbed into the north London club’s wound.
Diaz has shone for Porto this season and the Colombian will now be looking to hit the ground running in the Premier League.
