Tony Barrett Published 1 minute ago Manchester City are set to make an improved offer for Raheem Sterling after having an opening bid rejected but view Liverpool’s £50 million valuation of the forward as excessive. However, they are hopeful of reaching a compromise that would allow the transfer to take place. Rather than be put off from pursuing their interest in Sterling after their offer of £25 million with an additional £5 million in performance-related incentives was turned down, City’s confidence that a deal can be struck for the player has grown as a result of Liverpool establishing an asking price of £50 million. Previously, Liverpool’s stance had been that Sterling would not be sold this summer regardless of the outcome of his present stand-off with the club. Now that position has been subject to subtle but significant adjustment and City know that, like pretty much every player in modern football, Sterling is available at the right price. Despite the emergence yesterday of suggestions that Liverpool’s valuation is excessive and not in keeping with the £100,000-a-week contract proposal they made to the 20-year-old in February, sources at Anfield insist that was not their final offer and that it was only because talks were halted by Sterling’s camp that a further improved deal has not been put forward. There is also a strong feeling at Liverpool that even in a domestic transfer market in which home-grown talent is bought at a premium, Sterling’s status as arguably English football’s best young player — he recently received the European Golden Boy award — makes him a special case, particularly given City’s need to recruit English players to meet Uefa requirements. It now seems increasingly unlikely that he will remain at Liverpool, who appear to have come to the conclusion that attracting what would be a world-record fee for an under-21 player may be preferable to retaining him against his wishes. Liverpool’s initial hardline approach, in which they publicly and privately ruled out selling Sterling, has softened in recent weeks as the player became unpopular with a significant section of his club’s fans at a time when his form for club and country has plummeted. Having waited for that moment, City made their move and will now seek to capitalise on the breakdown in relations between Sterling and Liverpool by making a renewed offer expected to be in excess of £30 million, although the strong likelihood is that such a bid would also be turned down. City’s interest in Sterling has grown over the past two seasons with club scouts regularly attending Liverpool matches. Chelsea, Manchester United and Arsenal have monitored Sterling’s development but City have long since been favourites to win the race. For Liverpool, the prospect of losing Sterling within 12 months of Luís Suárez being sold to Barcelona increases the pressure on them. James Milner, Danny Ings and Adam Bogdan will all join them on July 1 but there is an acceptance within the hierarchy that much greater investment is required.