Luis Diaz insists Liverpool are not favourites to beat Real Madrid in Saturday's Champions League final, as he prepares for a "dream" appearance in European football's showpiece event.

Having already lifted the EFL Cup and FA Cup this season, Jurgen Klopp's team are looking to make up for missing out on the Premier League title by being crowned European champions for a seventh time in Paris.

Such a triumph would see Liverpool draw level with Milan's tally of European Cup/Champions League successes, leaving only Madrid (13) with more titles in the competition's history, as well as avenging their 2018 final loss to Los Blancos.

Liverpool have been touted as favourites after ending their domestic league campaign with a 19-match unbeaten run (16 wins, three draws), while Madrid have already required several spectacular comebacks in the competition, becoming the first team to reach a Champions League final after losing a match in each of the round-of-16, quarter-finals, and semi-finals.

Diaz has been a key part of Liverpool's extraordinary four-front fight since joining from Porto in January, recording six goals and four assists in 17 starts for the club.

But Diaz was cool to temper expectations ahead of an intriguing final.

"Always I have dreamed of winning the Champions League. Even more so against a team like Real Madrid, I am living a great dream," Diaz said. "I want to take advantage of these moments and be happy.

"Are we favourites? No, there are no favourites here. 

"We know that a final is contested minute by minute. We are going to give 100 per cent. We know what we have to do."

When asked if he was the side's most in-form player, the 25-year-old responded: "No, I don't believe so. I think every one of us is in very good shape to compete at a high level, not only me. 

"Everyone in the squad is in good form. I know if I am given the opportunity, I will go out there to take advantage like always."

The winger also highlighted attacking duo Karim Benzema and Vinicius Junior, alongside midfielder Toni Kroos, as the key threats for Carlo Ancelotti's side, with the former having scored 15 goals for Madrid in the Champions League this season to sit just two strikes shy of Cristiano Ronaldo's single-season record in the competition (17 for Madrid in 2013-14).

"Clearly, we know what Real Madrid have, what a great team they are, the experience they have," he said.

"But we also have a great squad and a great game, and we are going to counteract what they do. Who are Real's best players? I don't know – Karim, Vinicius, I really like Toni Kroos."