Chelsea are reportedly not willing to go above £40m in their attempts to sign Raheem Sterling from Liverpool.
The 20-year-old is refusing to sign a new contract at Anfield and is trying to force a summer exit away from the club.
Manchester City have had two offers rejected for the England international, the second of which was believed to be around the £40m mark, but Liverpool are apparently holding out for £50m.
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The Citizens are thought to be considering returning with an improved offer, but Sky Sports understands that Chelsea will not enter the race for Sterling until his valuation is lowered by £10m.
Jose Mourinho is eager to add home-grown talent to his squad to ensure that the Blues comply with Premier League regulations. John Terry, Gary Cahill and Cesc Fabregas are Chelsea’s only three home-grown players over the age of 21.
Sterling scored seven goals and contributed as many assists for Liverpool in the Premier League last season.
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