Liverpool transfer news: Club ready for third Raheem Sterling bid by Manchester City but are still holding out for £50million

Liverpool still holding on for £50million after rejected second bid of £40m

Raheem Sterling leaves Slovenia’s Bostjan Cesar in his wake during the Euro 2016 qualifier last Sunday (AP)

Liverpool are preparing for a third bid from Manchester City for Raheem Sterling, according to reports.

City are trying to revamp their squad this summer after a failed campaign last season and see the 20-year-old England winger as their top target.

The club have already made bids of around £30million and £40m for Sterling but, according to the Liverpool Echo, Liverpool remain steadfast in their £50m valuation of Sterling.

Last week former England captain Rio Ferdinand branded Sterling's proposed fee 'overpriced' and 'a joke'.

Liverpool don't want to sell Sterling, who is under contract until 2017, but knowing he is desperate to leave the club will do business if their valuation is met.

The Reds want a high fee as they also have to pay 20 per cent of any sale to his former club Queens Park Rangers.

Sterling rejected a new five-year, £100,000-a-week offer from the club earlier this year, with agent Aidy Ward stating that he wouldn't accept £900,000-a-week to stay at the club.