Liverpool have reportedly warned James Milner to lower his wage demands in order to complete a shock move to Anfield this summer.

The England international's future at Manchester City has been the subject of intense speculation, with the player set to be a free agent at the end of the season.

According to The Express, Liverpool are in advanced negotiations with the 29-year-old ahead of a possible move.

However, Milner is said to have been told that the Reds will not break their wage structure to accommodate him.

If the ex-Aston Villa midfielder will take a cut in salary, then a deal could be reached with the Merseyside club.