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.
