Liverpool are set to agree terms with Manchester City midfielder James Milner, according to reports.
The 29-year old England international has been with the club since 2010, after signing for £26 million from Aston Villa, is said to be keeping his options open.
However, there is interest from both Arsenal and Liverpool, with both keen to sign the Yorkshire man.
With Liverpool looking for to replace Steven Gerrard who is leaving Liverpool at the end of the season, and Arsenal are looking at Milner as a strong and versatile attacking player to add to their squad.
Should his contract expire at the end of the season, he will be able to sign to any club as a free transfer.
And, it is understood that the English midfielder’s demands for a four-year deal are making a renewal seem less likely and that Liverpool are now close to agreeing terms.