Pep Guardiola is desperate to land the Chilean with Alexis Sanchez's future uncertain at the Emirates.
And The Mirror claim City are now prepared to include Sterling, plus cash, in a bid to tempt the Gunners into doing business.
Arsenal insist Sanchez is not for sale but following the club’s disappointing 4-0 defeat to Liverpool on Sunday the forward is thought to be unhappy to stay.
And with the transfer deadline fast approaching, City are doing all they can to get a deal over the line before 11pm on Thursday.
Arsenal news: Man City have offered Raheem Sterling as part of a swap deal for Alexis Sanchez
The Mirror state both clubs are in direct contact over Sanchez and City have surprised them with Sterling’s inclusion in negotiations.
City believe a player-plus-cash deal is the only way they can get Arsenal to do business.
The report adds Arsenal may only be tempted by around £70m but City have not offered that in cash with Sterling added to the equation.
GETTY
Man City transfer news: Pep Guardiola is desperate to bring Alexis Sanchez to the Eithad
However, Sterling’s inclusion in any potential transfer will come as a shock to the player himself, who has started the season brightly under Guardiola.
Sterling has scored the winner at Bournemouth and the equaliser against Everton and looked to be a major part of Guardiola’s plans this term.
But the Spaniard has other ideas and is now willing to offload him in a bid to finally land top target Sanchez.
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