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The fee would constitute around £50m, with Los Blancos looking to lure the 27-year-old away from the Premier League winners in the final 12 months of his contract.
Sterling has struggled to hold down a place in Pep Guardiola’s title-winning side this season but has still produced 17 goals and nine assists in 47 appearances.
In an interview with the Spanish media last year, Sterling made an admission of his strong admiration for the Los Blancos, even pictured with the club’s shirt draped over his shoulders.
“It’s one of those things… Right now I’m at City and I’m really happy. But I say Real Madrid are a fantastic club, when you see the white shirt you know exactly what the club stands for, it’s massive. But at the same time, I have a contract with City now and I have to respect this. But it’s a fantastic club.”
Since joining the Citizens from Liverpool in 2015 in a controversial £49m move, Sterling has developed into a world-class forward, despite his seeming lack of proficiency in front of goal.
He’s scored 131 goals in 339 City appearances, placing him only behind Sergio Aguero in the clubs’ all-time top scorers list.
If the deal goes through, it will likely cause Manchester City to head into the forward market despite already signing Erling Haaland from Borussia Dortmund earlier this month.
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