Milner has held talks with both Arsenal and Liverpool about signing for them on a Bosman free transfer this summer, but now the Liverpool Echo reports an agreement has been reached with Liverpool and Milner’s representatives, with advanced talks scheduled for later in the week.
The 29-year-old’s contract at City expires this month and the club are believed to have offered him an improved deal of around £165,000 a week to stay, but Milner looks set to leave in pursuit of regular first-team football.
The England man started just 18 of the 32 Premier League games he appeared in last term and he is understood to be interested in a move to a club that would guarantee him a regular first-team place.
Liverpool are understood to have made those assurances to Milner, who will increase his current salary, although they will certainly not match the money offered to him by City in a bid to extend his five-year stay at The Etihad.
City boss Manuel Pellegrini said last month that he thought it was “possible” for Milner to stay with the dethroned champions.
“Maybe City have already offered all that the club can offer, maybe it’s not about more money, maybe there are different things to sign a new contract,” said Pellegrini.
“You must ask James what is happening with him. I hope he will find an arrangement, and I think it’s possible.”
However, all the indications are that the versatile midfielder will sign on a free transfer at Anfield on July 1.
It will represent a huge boost for under-fire boss Brendan Rodgers, who had made Milner one of his top summer targets.