Liverpool 'monitor James Milner situation'

Liverpool are reportedly ready to step in and sign James Milner if Manchester City fail to agree a new contract with the midfielder.

Earlier this month, City coach Manuel Pellegrini said that he was hopeful of tying the England international to a long-term deal at the Etihad Stadium.

However, the Manchester Evening News claims that Reds manager Brendan Rodgers has identified Milner as the man to fill the void left by Steven Gerrard when he joins Los Angeles Galaxy in July.

Liverpool may look to take advantage of the ongoing uncertainty over the 29-year-old's contract situation by snapping him up as a free agent in the summer.

The Anfield may even try to force a move for Milner before the end of January, if the ex-Aston Villa utility man signals his intent to leave the Premier League champions.