The former Barcelona midfielder is reportedly a Liverpool transfer target and his low fee could well encourage a host of bids from clubs around Europe.
It would appear Bayern have done this to speed up their own transfer plans this summer, with central midfielder Corentin Tolisso reportedly another player who could be moved on.
EXPERT VIEW FROM GERMANY
In Germany there are only rumours about Liverpool signing Thiago.
Bayern are not happy to let him leave. But Thiago did not go to an appointment to sign an agreed new contract some weeks ago, as Bayern anticipated. He got a new opportunity and wants to leave. Now Bayern are setting the pace by assigning him a price tag.