Liverpool FC and Arsenal FC are set to engage in a transfer battle for Manchester City’s James Milner

Liverpool will look to sign James Milner, who could be a free agent come this summer, and will fight Arsenal for his signing, report Daily Express

The report suggests: The Reds are monitoring Milner’s protracted contract negotiations at City and if the talks show any sign of breaking down the Merseyside club are ready to move to snap up the England international.

The 28 year old is in the last year of his contract with the Sky Blues and refused to sign an extension in the summer as he was unsatisfied at his bit-part role last season. Even though he won the Premier League title with the club, Milner did not play a huge part in the title run and was used as a squad player, albeit an important one, throughout

Milner starterd his career with Leeds United, where he graduated from the academy and made his way through the ranks into the senior squad. The player was loved at the club but financial problems eventually forced Leeds to sell Milner to Newcastle United for about £4m. After four years, Aston Villa bought the player for a fee of around £12 million. Milner played some of his best football at the club and his impressive performances earned him the attention of Manchester City, who after having their initial bids rejected, finally got him for £26million cash-plus-player exchange in the summer of 2010, with Stephen Ireland moving to Villa Park.

This season, he has been used more and  has been involved in 26 games in all competitions this season – making 14 starts and coming on in 10 other games. However, bit of that has been due to Pellegrini’s injury ridden squad. In the absence of all established strikers, Pellegrini has started Navas, Silva, Nasri and Milner to ensure there isn’t a shortage of goals up front. He has been played in different positions as well as centrally to ensure that.

Pellegrini is keen for Milner to extend his contract: “I think they are continuing to have conversations and we hope he’ll arrive at it soon. I always say he’s a very important player for us. He always make a contribution whether he starts or comes on.”

Milner is however, reported to be concerned that when the City boss has a fully fit squad, he could again be receded to the bench. The player still has three to four good years left in him, if not more, and it is natural for him to be want to start most games.

Liverpool face competition from Arsenal and both the clubs are reported to be lurking around and pounce in case City are unable in their task. It would be a good move for either side as both could be greatly boosted with a versatile and solid player like Milner within their ranks