The 19-year-old had been heavily linked with Anfield as Liverpool looked to refresh their attack following the departure of Mohamed Salah.
According to The Athletic, however, PSG is Diomande's chosen club if a transfer away from Leipzig materialises — a preference shaped by his belief that the Paris project gives him the best opportunity to compete for major trophies and eventually challenge for the Ballon d'Or.
Diomande recorded 12 goals and nine assists in 33 Bundesliga appearances last season after RB Leipzig acquired him from Leganés, cementing himself as one of the most sought-after young attackers in European football.
Any deal will be expensive regardless of which club leads the pursuit. Leipzig are determined not to sell for less than €130m, having already rejected Liverpool's reported willingness to propose a package worth €100m — a figure described as falling well short of their demands.
The teenager is currently representing Ivory Coast at the World Cup, which has added another layer of complexity to transfer negotiations that are unlikely to conclude until the tournament ends.
For Liverpool, the setback is a real one. With Salah gone, they need to address their right flank and Diomande had been considered one of the most realistic options given his age, profile and Bundesliga pedigree. His stated preference for PSG does not close the door entirely, but it significantly complicates any pursuit at a price Leipzig consider appropriate.
PSG's appeal to a teenager of Diomande's age and ambition is clear — they are Champions League regulars, operate in a city with enormous commercial appeal, and have a recent track record of developing young attackers into global stars. Whether Leipzig will entertain selling at a figure PSG are willing to meet is the next question. At €130m, they are asking for a number that few clubs in Europe can reach without significant financial strain.