Liverpool sign James Milner: Reds fend off Arsenal interest to land Manchester City midfielder on a free transfer on 1 July

Milner will join Liverpool next month after running down his contract at the Etihad

James Milner is set to sign for Liverpool this week despite rival interest from Arsenal (Reuters)

Liverpool have confirmed that they have agreed a deal with James Milner that will see the England international join them on a free transfer, subject to a completed medical.

Milner will leave Manchester City when his contract expires on 1 July, and has agreed a reported £150,000-a-week long-term contract that will see the 29-year-old move to Anfield.

The club announced the transfer signing on their official website, and confirmed that the midfielder will undergo a medical at the club’s Melwood training base before finalising the move.

Milner has already surpassed the half-century mark for England having amassed 53 caps during his career, and Liverpool becomes his fifth professional club having played for Leeds, Newcastle and Aston Villa before joining City in 2010.

Milner has started 18 of his last 28 games under Pellegrini (Getty Images)

However, after finding his first-team opportunities somewhat limited by Manuel Pellegrini, Milner decided to move on to pastures new having rejected a £165,000-a-week contract from the club, and Liverpool have fended off interest from Arsenal to land him on a free transfer.

The provision to play in a central role under Brendan Rodgers has also been a swaying factor for Milner, with Pellegrini showing a preference to play him out wide, and with Steven Gerrard leaving Liverpool to join LA Galaxy in the MLS, Milner is believed to be in the running for the captaincy along with his England colleague Jordan Henderson.

Interestingly, City made no reference to Milner's departure on their own website, Milner had been in contract negotiations with the club for the last six months, but ultimately decided that the time was right to end his five-year stay at the Etihad.