Manchester City have launched a £30m ($45.8m) bid for Raheem Sterling in their attempt to prise the midfielder away from Liverpool in the summer, according to the Daily Mirror.

Manchester United, Arsenal and Chelsea are all in pursuit of the 20-year-old, who has refused to sign an extension at Anfield, where his deal expires in 2017. City have already lost James Milner to Liverpool after the England international joined the Reds on a free transfer after refusing to extend his contract at Etihad.

City are hoping that Liverpool can return the favour and have made a verbal offer for the player, which would be translated into a formal bid the moment the Reds gave their consent. Sterling has had two brilliant seasons at the club and will also help complete City's homegrown quota, a criterion they failed to fulfil last season.

The 2013/14 Champions have failed to work with any English talent over the past few seasons, with the exception of Milner, having seen precocious talents by the likes of Jack Rodwell and Scott Sinclair leave the club for more game time.

Manuel Pellegrini will be hoping that a similar situation does not arise with Sterling, who has all the ingredients to become a world beater in the years to come, with his talent apparent on the pitch in the way he makes Liverpool tick.

However, United are looking to scupper any possible deal of the player with the Etihad, as Louis van Gaal is reportedly a huge fan of the midfielder and will match whatever bid City make for him in the summer.

It will be a difficult deal to pull off, given Liverpool's history with the Red Devils and the management will be looking to scupper any deal with United to appease fans. Liverpool, last season lost their top player in the form of Luis Suarez.

Meanwhile, Arsenal are also believed to be interested, with Arsene Wenger mulling over a swap deal with Theo Walcott for the player.