The 31-year-old, who joined City in 2006, has made just one competitive appearance for the club following manager Pep Guardiola's arrival in 2016.
City are in favour of the move and believe a year in La Liga will be good for Diaz's development as a player, but the report from Spain is consistent with the one from England - stating Brahim is now refusing a move and is eager to prove his worth to Guardiola.
"I've got a lot of good relationships with the boys in the team and I thought Jordan Pickford had a good World Cup".
"We spoke in the week about courage, intensity and a desire to play". I'm so satisfied with the guys.
"I saw many good things". He won all the duels against Jadon Sancho and these players - he did it really well. "It was a good game".
Following his latest error, Liverpool fans revealed their concern for Karius and suggested a loan move away from Anfield could be his best option ahead of the new campaign.
With the bulk of his EPL title-winning squad enjoying an extended break after their exertions at the World Cup, it was a vastly inexperienced side sent out by the Spaniard at Soldier Field.
The Reds are expected to make 10 changes at half-time, with all outfield players set to get a run out in the pre-season fixture.
"Leroy Sane arrived two days ago", he added.
Better was to follow for the American, a target for Sunday's opponents, as he put the Germans into the lead with a minute to play.
Let's be honest, contracts mean very little in the modern game and essentially only serve to allow clubs to be remunerated before allowing a player to leave. We of course prepared to win but it's normal [not to win games] in this part of the season - it just prepares the team. "They are coming back step by step".
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