Liverpool want to sign Manchester City midfielder James Milner on a free transfer this summer.

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.

They will face competition from Arsenal for Milner, who joined City from Aston Villa in a £26million cash-plus-player exchange in the summer of 2010, with Stephen Ireland moving to Villa Park.

City remain confident that Milner will become the latest of their stars to commit his long-term future to the Etihad, following England teammate Joe Hart, Sergio Aguero, David Silva, Vincent Kompany, Samir Nasri, Edin Dzeko and Aleksandar Kolarov.

Milner fended off City's invitation to sign a new deal last summer because he wanted to see how many games he would play after becoming frustrated at being a bit-part squad player.

And even though he has been involved in all but two of City's 26 games in all competitions this season - making 14 starts and coming on in 10 other games - he is understood to be concerned that, once manager Manuel Pellegrini has a fully fit squad again, his chances will be restricted, especially if City strengthen their squad again this summer.

Pellegrini is desperate for Milner to sign. "I think they are continuing to have conversations and we hope he'll arrive at it soon," he said.

"I always say he's a very important player for us. He always make a contribiution whether he starts or comes on."

Source: Daily Express