By Merseyside correspondent Cam Downes

Manchester City have tabled a second bid for Raheem Sterling worth £40million, Football Insider sources understand.

The offer, which is made up of an initial £35.5m plus £4.5m of add-ons, was made by City on Wednesday.

City insiders insist it is their final bid for the England international after their opening offer last week of £25m plus £5m of add-ons was rejected by Liverpool.

The Merseyside club’s owners Fenway Sports Group must now decide whether to cash in on their prize asset or risk an unhappy player in their squad next season.

Sterling, who has two years remaining on his £35,000-a-week contract, has made it clear that he will not sign a new Liverpool deal and that he wants to leave Anfield this summer.