EXCLUSIVE | By Manchester correspondent Alex Stevens

Raheem Sterling has agreed personal terms with Manchester City, Football Insider sources understand.

The Liverpool star is closing in on a move to Etihad Stadium even though City have not yet returned with a third bid to seal a deal for the player.

Manuel Pellegrini’s team have had two offers for Sterling rejected by the Merseysiders, the first of £30m a fortnight ago and the second worth £40m last week.

City are expected to return imminently with a third bid for the England international that could come close to matching Liverpool’s £50m valuation.

Nevertheless, Football Insider has learned that City and Sterling’s representatives have agreed the terms of a five-year contract worth more than £130,000 per week.

Sterling’s camp have been told that the Pellegrini’s side will make a further offer for him which they are confident will persuade Liverpool to sell their prize asset.

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

Liverpool have publicly insisted they will not cash in on their prize asset but their private stance is that they would reluctantly agree to do business if their £50m price tag is met.