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Manchester City are set to make Liverpool a third - and this time genuinely final - bid of £40million for Raheem Sterling.

Their new offer is likely to also include another £5m in add-ons, which City believe will get the deal done.

Liverpool have rejected two approaches from the Mancunian Blues for Sterling already this summer - including one last month that was billed as their last offer - but are keen to end the saga, which is threatening to split the Anfield dressing room.

Some of their squad are understood to be upset by the England forward’s belligerence in trying to force through a transfer.

They privately hope he will be sold and are interested to see which players the club brings in as replacements.

Fellow midfielder Jordan Henderson, who has maintained good relations with Sterling throughout the controversy of the last few months, will be confirmed as Steven Gerrard’s successor as captain on Friday.