The Citizens have made the signing of Sterling a priority for their summer business as they look to boost the number of homegrown stars in their squad. They have allowed the likes of Gareth Barry and Joleon Lescott to leave while James Milner and Scott Sinclair appear to have no future at the club.
Signing Sterling would be a major coup for Manchester City and they want it done as soon as possible. That is why they will launch an offer on the opening day of the transfer window.
Premier League interest
They will also need to fend off a number of their Premier League rivals. Manchester United, Chelsea and Arsenal have all been credited with an interest in the 20-year-old and could match City pound-for-pound in a bidding war.
City have almost unlimited reserves, but must comply with financial fair play regulations from both Uefa and the Premier League. So while Liverpool's £50million valuation is attainable for City's billionaire owners, such a transfer would likely incur an FFP penalty.
To limit the amount of cash, City will try to involve some of their unwanted players in the deal. However, Liverpool, reluctant to sell in the first place, will demand a cash fee for the England international.
What remains to be seen is whether the likes of Arsenal will challenge them. The Gunners are now stronger in both financial and footballing terms. Their eight-game winning streak has elevated them to second place in the Premier League and has left many predicting them as title winners next season.
But Arsene Wenger is now believed to be reconsidering his interest in Sterling after being left surprised by a leaked video that showed Sterling enjoying the legal high of nitrous oxide.
The video followed pictures of Sterling smoking a shisha pipe and came before another picture of him smoking a shisha pipe with Liverpool team-mate Jordan Ibe. Unsurprisingly, after rejecting a £100,000-a-week contract, there are big questions over Sterling's attitude.
Would Liverpool like to see Raheem Sterling sold as soon as possible or should they try their best to keep hold of him? Give us your thoughts in the comment box below!