Liverpool, Arsenal and Inter Milan are all said to be watching James Milner's contract situation with interest.

The 29-year-old has yet to sign a new deal with Manchester City, meaning he would be a free agent in the summer if he fails to sign an extension.

The defending Premier League champions have tabled a new three-year contract worth £80,000 per week, however, England international Milner wants to extend those terms by an extra 12 months, reports the Mirror.

Failure to get his desired contract could result in the player leaving the Etihad at the end of the season for nothing - but he would not be without his suitors, as Premier League rivals Liverpool and Arsenal both watch developments closely.

Inter, meanwhile, who are now managed by former City boss Roberto Mancini, are also keeping a close tab on Milner.

Source: Metro