Manchester City will include Edin Dzeko in their offer for Liverpool midfielder Raheem Sterling. The People says the Bosnia striker is being lined up as the make-weight in a £50m deal for the Liverpool forward.

Dzeko, 29, is being offered to the Reds as the battle intensifies to secure the signature of the England striker - with Arsenal now also in hot pursuit.

Manchester City were initially hopeful that a straight cash deal would be enough to tip the balance in their favour.

But it appears that a player-plus-cash deal - with the club also halting any attempt to prevent James Milner's move to Anfield with a mega-bucks deal - is on the table.