By Wayne Veysey

16th Apr, 2016 | 7:27am

Report: Liverpool set to lose battle to sign one of Bundesliga's biggest stars

By North-west correspondent Alex Stevens

Liverpool are set to be beaten by Manchester City to the signing of Ilkay Gundogan, according to a report.

The Merseysiders are in the market for a midfield driving force this summer and have set their sights on the 25-year-old Germany international.

But incoming City manager Pep Guardiola has sanctioned a move for Gundogan and, according to the Sun, the Manchester club are on the verge of clinching a deal for one of the Bundesliga’s biggest stars.

It is reported that the Champions League semi-finalists have settled on a £30million fee for the player even though his club Borussia Dortmund were holding out for £34million.

It would be a blow to Liverpool boss Jurgen Klopp to lose out on the Germany international, who has been open about the prospect of leaving his current club in the summer window.

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

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

The 16-cap international came close last year to joining City’s rivals Manchester United, but the 25-year-old is on the wishlist of new boss Guardiola and is ready to agree terms with the club.

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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.