Jurgen Klopp has confirmed that Diaz has joined the squad in training ahead of the trip to Luton despite the recent kidnapping of his father.
It was reported last weekend that both of Diazs parents had been kidnapped in Colombia, leading the winger to miss the Reds meetings with Nottingham Forest and Bournemouth.
His mother was later rescued, but his father remains missing as Colombian authorities have intensified their efforts to bring him to safety.
The manager revealed that Diaz has trained with his team-mates ahead of this weekends clash with Luton, but he added that it is down to the player whether he wishes to be involved on Sunday
Klopp said he will not force anything with regard to the No. 7s availability for the game and that the club are waiting for the really good news about his father.