By North-west correspondent Alex Stevens

Liverpool are set to be beaten to the signings of Ilkay Gundogan and Marc-Andre ter Stegen by Manchester City, according to a report.

The Merseysiders are in the market for a new goalkeeper to compete with established No1 Simon Mignolet as well as a midfield driving force.

But incoming City manager Pep Guardiola has sanctioned moves for Gundogan and ter Stegen and, according to the Telegraph, the Manchester club are on the verge of clinching deals for the duo.

It would be a blow to Liverpool boss Jurgen Klopp to lose out on the pair, who are both set to leave their current clubs in the summer window.

Borussia Dortmund midfielder Gundogan has told the Bundesliga side he will not be extending his contract, which expires in the summer of 2017.

Germany international Ter Stegen joined Barcelona in 2014 from Borussia Mönchengladbach, but has spoken recently of his frustratuon with life under Luis Enrique.

Claudio Bravo is first choice in La Liga, with Ter Stegen used only in the Champions League and Cop del Rey.

According to the Telegraph, Ter Stegen’s preference to join the Guardiola revolution at City, which will leave Klopp looking elsewhere for a replacement for error-prone Simon Mignolet.

Klopp, who was Gundogan’s former manager at Dortmund, is a firm admirer of the player and, as reported by Football Insider earlier this month, had asked to be kept informed about the Germany international’s situation.

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The Germany international came close last year to joining City’s rivals Manchester United, but the 25-year-old had been on the wishlist of new boss Guardiola and is ready to agree terms with the club.

Gundogan joined Dortmund from Nuremberg for £4million in 2011 and has established himself as one of Europe’s most sought-after midfielders.

He signed a contract extension last summer but it is due to expire in 15 months and the German club are ready to cash in at the end of the season.