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James Milner to reject new Manchester City deal worth £34m?

England midfielder James Milner will reportedly turn down a new Manchester City deal worth £34m to prompt a summer bidding war between Arsenal and Liverpool.

James Milner will reportedly snub a new £165,000-per-week contract at Manchester City to join either Arsenal or Liverpool this summer.

The England international can leave the Etihad Stadium on a free transfer at the end of the season, but manager Manuel Pellegrini is desperate to keep him.

The Daily Star claims that City are willing to make Milner one of their highest-paid players by offering him a four-year deal worth £34m.

However, the 29-year-old will apparently reject those terms in favour of a new challenge, prompting a bidding war between some of the Premier League's top clubs.

Arsenal are thought to be favourites for his signature, although Liverpool are hoping to bring him to Anfield and Milner will hold further talks with agent Matthew Buck next week before deciding his future.

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James Milner of Manchester City celebrates after scoring a goal to level the scores at 1-1 during the FA Cup Third Round match between Manchester City and Sheffield Wednesday at Etihad Stadium on January 4, 2015
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