Liverpool Transfer News: James Milner Blow, Latest Alexandre Lacazette Rumours

Manchester City boss Manuel Pellegrini has stated his belief James Milner will sign a new deal with the Premier League champions, dashing Liverpool's hopes the player would move to Anfield in the near future.

ESPN quoted the Chilean speaking about the England international, who is currently free to sign a pre-contract agreement with foreign teams as his current deal runs down:

"I hope that James will stay here and he will sign his contract in the next few days."

Pellegrini's announcement will bitterly disappoint Brendan Rodgers, who is looking to add dynamism to his midfield in light of losing Steven Gerrard to MLS. 

Despite Milner's apparent reluctance to sign a new deal with City, the player has once again played a prominent role for the Sky Blues. The versatile talent has appeared 18 times for the champions this term, providing five assists for his team-mates, per WhoScored.com.

However, eight of these matches have seen Milner enter from the bench as a sub—a point which may see the player weigh up his options closely. 

Jeremy Cross of the Daily Star wrote on Friday that Pellegrini had "ordered" the club to hang on to Milner as he sees him as one of his most valued squad members.

Alex Livesey/Getty Images

Cross claimed a City source said: "The manager rates him highly. He can play in several positions and is rarely injured. He's also English, which helps meet UEFA demands on quotas, so his value to the club is obvious."

It makes sense for City to re-sign Milner as he brings much-needed energy to different parts of the team. He is still only 29 years old and definitely has plenty left in the tank to offer Pellegrini and the Etihad fans.

Milner had been left out of City's squad for the trip to Everton recently but David Lynch of The Manchester Evening News confirmed there was no transfer motivation involved in his non-selection:

"

Told Milner just left out today as a precaution I'm told. #MCFC being careful with him - nothing to read into!

— David Lynch (@DavidLynchMEN) January 10, 2015"

Michel Euler/Associated Press

And it seems City could further disappoint Liverpool with rumours that hotshot transfer target Alexandre Lacazette could also turn down the Anfield giants for a move to Manchester.

Paul Hetherington of the Daily Star wrote City are preparing an offer for the £25 million-rated striker as they look to reshape their forward line.

Liverpool had been linked with a move for the prolific Frenchman, per Anthony Chapman of the Express, with Arsenal also interested in bringing the star to the Premier League.

Lacazette is one of the hottest strikers on the continent at present and has been scoring goals for fun, as highlighted by Opta:

However, Lyon president Jean-Michel Aulas said he has not discussed a transfer with City over the player but admitted he has recently held talks with them over other matters, per Chapman:

"

I don't think there will be any movement for [Lacazette]. Our goal is to become a top European club in the next give years, and that's why we don't want to sell him. I spoke with Man City, but it was about other topics and not a transfer. There will be no departures in the winter and I also think the same in the summer.

"

Liverpool certainly need reinforcements after a disastrous start to their Premier League campaign—although there are current signs of the green shoots of recovery in place.

Mario Balotelli has been a very poor signing for the club and Ricki Lambert has not been utilised fully by Rodgers since his capture from Southampton.

Crystal Palace have been said to be interested in acquiring Lambert's services but new Eagles boss Alan Pardew has confirmed the player will remain at Anfield for now, per ESPN FC, saying he wishes to fight for his place after his dream move last summer.

However, with Gerrard on the move Liverpool must come up with viable targets soon and find a way to buy themselves out of their current troubles—even if it means selling to balance the books.

Milner would have been the perfect option but it seems Rodgers will have to focus his energies elsewhere.