Another win over the French side will be enough to seal a top-two finish in Group E as the Reds aim to continue their perfect start to their European campaign.
Mohamed Salah is rested and named on the bench, along with the likes of Trent Alexander-Arnold, Alisson Becker and Darwin Nunez, as Jurgen Klopp gives Cody Gakpo, Diaz and Ben Doak chances to impress in attack.
Diaz's start comes just after it was announced that his father has been released almost two weeks after he was kidnapped.
Harvey Elliott starts alongside Wataru Endo and Alexis Mac Allister in midfield, while another youngster in Jarell Quansah will line up in defence alongside Joel Matip, with Virgil van Dijk ill and not travelling. Ryan Gravenberch is missing with a small knee injury, meanwhile.
Thiago Alcantara is expected to be out until the New Year, while fellow midfielder Curtis Jones skipped the 1-1 draw at Luton with a "minor fitness issue" and will not return before the international break.
Andy Robertson remains sidelined after shoulder surgery and Stefan Bajcetic is also still unavailable.
Liverpool XI: Kelleher; Gomez, Matip, Quansah, Tsimikas; Endo, Elliott, Mac Allister; Doak, Gakpo, Diaz.
Subs: Alisson, Mrozek, Konate, Szoboszlai, Nunez, Salah, Jota, Chambers, Scanlon, Gordon, McConnell, Alexander-Arnold
Time and date: 5.45pm GMT on Thursday November 9, 2023
Venue: Stadium de Toulouse