Liverpool are heading the queue to sign James Milner on a free transfer this summer if the Manchester City midfielder fails to agree a new contract at the Etihad Stadium.

The Reds are understood to have expressed a strong interest in Milner as the midfielder remains locked in negotiations over a new deal when his City contract expires at the end of the season.

Liverpool were rebuffed in an effort to sign Milner last summer and are ready to make a move if the opportunity presents itself, especially following the announcement that Steven Gerrard will leave Anfield this summer.

Milner is now officially allowed to speak to foreign clubs about a summer transfer but is believed to have no intention of leaving English football next season.

He is in talks with City over a new four-and-a-half year deal worth £90,000-a-week and could use Liverpool's admiration to force a better offer from the Premier League champions.

The 29-year-old has played a key role for Manuel Pellegrini's side this season and scored both goals in Sunday's 2-1 victory over Sheffield Wednesday in the FA Cup third round. 

Source: Goal.com