The report claims that Jose Mourinho’s side have entered the race to sign Sterling, but the West London side are not ready to spend a said asking price of £50m to Premier League rivals Liverpool.
Manchester City had a bid of half that amount – £25m, rejected last week by the Merseyside club but it is understood they will return with a £30m bid in the coming days.
Sterling has become one of the most talked about players in the English game, both for his on field performances and his contract negotiations off it.
Having made over 90 league games for the Reds in four seasons, Sterling is now expected to leave.
Some reports have claimed that the tricky winger wants to work with Manchester United boss Louis van Gaal, but a link up with Jose Mourinho could now prove too tempting.