Manchester City are believed to be on the verge of finalising a £50million deal for Liverpool's Raheem Sterling.

The Daily Star is reporting that City are confident of completing the transfer next week, which would allow Sterling join his new teammates midway through their pre-season tour of Australia.

The Reds twice rejected bids of £40million from City, but it is understood they will accept City's improved offer, making Sterling the most expensive Englishman in history.

City are reportedly offering a £45million cash component with a further £5million conditional to Sterling's performances at the Etihad Stadium.