Arsenal and Liverpool have not given up in their pursuit of Manchester City midfielder James Milner.

Milner, who joined the Premier League champions from Aston Villa for £26 million five years ago, is out of contract at the end of the season and could therefore be available on a free transfer.

City have offered the England international a new deal, but Milner has yet to decide on his future as he harbours serious concerns about where he fits into Manuel Pellegrini's plans.

AC Milan, Inter Milan and Roma were all interested in signing Milner in January, but he is reluctant to move his young family abroad.

And that could make it a straight fight between Premier League rivals Liverpool and Arsenal for his signature.

Both sides are monitoring his situation and are preparing to pounce should the 29-year-old make his mind up to leave City.

Source: talkSPORT