Pellegrini hopeful midfielder will reject Arsenal and Liverpool

Manchester City boss Manuel Pellegrini remains hopeful that James Milner will sign a new contract at the club.

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.

City are only keen on offering a two-year deal with the option of a further year and Pellegrini has spoken of his desire to keep the Englishman further than the summer.

“Maybe City have already offered all that the club can offer, maybe it’s not about more money, maybe there are different things to sign a new contract,” Pellegrini told reporters.

“You must ask James what is happening with him. I hope he will find an arrangement, and I think it’s possible.”