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Liverpool’s owners are prepared to let Raheem Sterling rot in the reserves rather than allow him to leave on the cheap.

Manchester City launched their new bid for the youngster when they made contact with Liverpool on Friday, and have made it clear they will follow that up on Saturday with a formal written offer of £40million, plus £4m in add-ons.

But the Reds' Fenway powerbrokers in Boston are ready to dig in their heels over their demand of £50m or no deal.

Sterling has told the club categorically he will not be on the plane when the rest of the squad flies off to the Far East on Sunday for the start of the pre-season tour.

He missed two days of training this week through illness but did return to the Melwood training ground on Friday to take part in two sessions before and after lunch, as well as joining the squad at a hotel for a meal in-between.

(Image: EMPICS)

But the club are taking advice over the contractual implications, should Sterling fail to report on Sunday, and they will immediately open negotiations with the PFA - who offered to act as mediators - over the level of punishment appropriate to the situation.

That usually means a fine of two-weeks' wages – around £70,000 in this case – but can in fact be a lot more, depending on the circumstances and the PFA’s stance.

Follow all the latest in our transfer news live blog.

Worse for the player though, is the attitude in Boston.

Owners John Henry, Mike Gordon and Tom Werner have been distinctly unimpressed with his actions this week in trying to force a move, and in attacking manager Brendan Rodgers in the process.

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City are determined to get their man, but will make it clear this is a final offer and that they are not prepared to reach the £50m figure that would resolve the dispute.

The Reds’ American top-brass would eventually accept a bid that goes through the £50m barrier, but have now made clear they are prepared to sit the situation out if it doesn’t – which would condemn Sterling to spending months in the reserves until the transfer window reopens in January.

The player still has two years left on his contract, and Liverpool's owners are adamant their plans for further summer spending are NOT related to the sale of the 20-year-old England international.

Even if they manage to agree a £30m fee for Aston Villa striker Christian Benteke, the American trio are happy to swallow that loss for six months as they refuse to back down from ther tough stance they have taken with City.