Jamie Redknapp has warned Liverpool to be very careful with how they handle the Raheem Sterling situation.

The 20-year old winger reportedly wants to leave Anfield this summer and the only way the Reds could keep him would be to pay him an enormous amount of money.

There within lies the problem for Redknapp who feels the Merseyside club is damned if they do and damned if they don't with the England international.

"The Raheem Sterling situation is a very difficult one," he said on Sky Sports.

"When you've got a 20 year old wanting £150,000 a week, allegedly, that's so hard as a club.

"Do you give him that and then give yourself a real problem with the wage structure? Or do you try your best to go and get yourself £50m-£60m?

"The other problem with that is a large chunk has to go to (former club) QPR because they've got a sell-on (clause in his contract)."

Sterling is being linked with the likes of Arsenal, Chelsea and Manchester City.