Winger Diaz out for six to eight weeks, says Klopp as injuries mount for Liverpool
Trent Alexander-Arnold (24) was also forced off against Arsenal after damaging his ankle and faces two to three weeks out, while fellow defender Joel Matip (31) picked up a calf problem and will be unavailable for Wednesday's Champions League clash at Rangers.
Diaz left the Emirates Stadium on crutches with his knee in a brace, as Liverpool fell to a 3-2 defeat in the Premier League, and will miss a number of key games.
Liverpool host Manchester City on Sunday and have a trip to Tottenham Hotspur coming up next month, as well as Champions League Group A fixtures against Ajax Amsterdam and Napoli.
"Lucho looks like a quick healer but anyway we obviously have to be careful. It could have been worse, the way he moved after the game... It is six to eight weeks, we will see how long," Klopp told reporters.
"I thought we were maybe, hopefully, a little bit lucky with Trent because the ankle didn't look good... It is always difficult to say. Shorter than a month, two weeks I heard but we have to see if that's right.
"It is not great, but it is the situation and we have to deal with it and we will."
Andy Robertson (28) will be in the squad for the Rangers game, Klopp added, but the fixture comes too soon for Alex Oxlade-Chamberlain (29), Naby Keita (27) and Curtis Jones (21).
Liverpool are second in Group A with six points, three behind leaders Napoli, after two wins in their previous three games while Rangers have yet to pick up a point and remain rooted to the bottom.
Klopp's side claimed a much-needed 2-0 win over Rangers at Anfield last week but suffered another setback in the league, after Sunday's defeat at Arsenal left them languishing in 10th place with 10 points from eight games.
"I can't promise we will fly tomorrow but we will fight," Klopp said. "It didn't become easier since Sunday because of the injuries but the team I saw today in training I liked a lot. Let's give it a go."