Liverpool and Arsenal battling it out for Milner

The Gunners will hold talks with City this week as they prepare to lodge a £10m offer, according to reports.

But Liverpool want Milner too and are weighing up whether to lodge a firm bid for the England international.

Milner reportedly told City last month that he was frustrated with his fringe role at the club.

He has started less than half of City's game since moving from Aston Villa in 2010 - and just 12 of 38 this season.

City are under the pump to meet Uefa and Premier League home-grown player quotas and want Milner to sign a new four-year contract.

However, he would rather leave on a free when his current deal ends, at the end of next season, than pen an extension.

But interested suitors will want to move fast.

Milner is currently preparing for this summer's World Cup and Roy Hodgson has ordered all his Three Lions stars to nail down their futures before flying out to Miami on June 1.