Manchester City are waiting to pounce for Liverpool starlet Raheem Sterling as new contract talks drag on.

The Daily Mail says City are monitoring Sterling's situation closely and could consider launching a bid in January if the stand-off is not resolved by then.

Sterling's advisers have held two meetings with Liverpool managing director Ian Ayre - the second of which took place at the start of the week - but the player has yet to receive a formal offer, despite the fact he is entering the final 18 months of his current contract.