If this is the player Klopp wants then I would prefer we just activate the release clause before it expires and be done with it. I know this is not a viable regular/permanent M.O. as you are bound to overpay for some players because nowadays clubs insert release clauses that systematically overvalue players by a long shot, but I'd rather this than find ourselves competing with NewCastle.
The reason I say this is that the player reportedly wants us and would love to work with Klopp. However, in this day and age agents are very powerful and receive hefty payments that are not talked about as much as they should be. This is something that, as far as I know, flies under the FFP and other financial regulations radar and so is often the bread and butter of clubs like City and PSG (for instance check the details of the Haaland deal. Its not just BVB that got paid good money).
If we get into a fight with NewCastle hoping we can count on the player's preference to join us in order to seal a deal 10M or 15M below the current release clause then I think we'll lose because NewCastle will have no problem offering as much money as the agent wants in order to steer the player towards them and of course push the bidding war beyond what we can/are willing to pay.
Assuming this is the manager's no.1 choice then just pay the F***ing release clause and be done with it. Stop F***ing around like the last two summers and get it done.