The England international is said to be unhappy with the amount of time he is getting on the pitch under Manuel Pellegrini and wishes to look elsewhere in order to play more regularly.
It seems almost certain now that the 29-year old will not remain at the club, as Pellegrini has said the decision is down to the player and made no real case for the player to remain at the club, perhaps a sign that he doesn't believe him to be central to his plans next season.
This has had both Arsenal and Liverpool on alert, but the departure of Steven Gerrard would see him play a larger role at Anfield and so is thought to be his desired location for a summer move.
Since signing for City in 2010 from Aston Villa for £26 million, the player has been regularly in the side and has notched up 13 goals in his 147 appearances for the club. He has been part of two championship winning sides during his time in Manchester and a move away from the club may not be popular with the city faithful.
The move could come as a help to Liverpool who look likely to lose the services of Raheem Sterling in the summer, as he didn’t make an appearance for his side during their 6-1 thrashing at Stoke City on Sunday.
After finishing sixth it looks to be another summer of change at Anfield and as a free agent, Milner is an addition to their squad that wouldn’t need to come out of their budget.
He could be joined at Anfield this summer by fellow England international and City player Micah Richards, who is returning to Manchester this summer after a spell in Italy. Richards is thought to be surplus to requirements at the Etihad and could prove useful for Brendan Rodgers as he tries to improve Liverpool's defensive record.
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