Report: Liverpool could sign James Milner this week, 'verbal agreement reached'

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Liverpool are reportedly closing in on signing Manchester City midfielder James Milner.

According to The Telegraph, Liverpool have a 'verbal agreement' with Manchester City midfielder James Milner - and could announce his arrival this week.

The Reds may have missed out on Champions League football, but big summer signings are still expected after a dismal season under Brendan Rodgers.

It now seems that Liverpool are ready to bring in their first signing of the summer, with The Telegraph reporting that the club have a verbal agreement to sign England international Milner.

The 29-year-old is out of contract at the Etihad Stadium this summer, and is expected to move on as a free agent after being in and out of the side under Manuel Pellegrini.

The report suggests that Milner's representatives have now agreed a deal with the Reds, and the deal could be announced later this week after fending off late interest from Premier League rivals Arsenal.

Liverpool need to find a replacement for outgoing captain Steven Gerrard, and whilst Milner has spent the majority of his career as a right-sided midfielder, he could now move into the centre of park at Anfield in order to fill the gap left by Gerrard.

It's also believed that Milner is snubbing a more lucrative contract to stay at City because he now wants to play first team football on a regular basis, something he thinks he will receive at Liverpool.

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