City have already failed with two bids, the second reported to be worth £40million, this summer, but it appears they have now made progress in talks. Sterling missed the start of pre-season training earlier this week, citing illness as he sat out Wednesday and Thursday's sessions before reporting on Friday.
It had been reported that he had asked manager Brendan Rodgers if he could be excused from the pre-season tour before being named in the 30-man squad.
Liverpool are due to fly to Bangkok on Sunday ahead of their first friendly against a Thai All Stars side next Tuesday.
It is understood Sterling reported for training with rest of the squad at Melwood on Sunday morning but Liverpool took the decision to withdraw him from the trip.
Sterling, 20, joined Liverpool from QPR's academy in 2010 and has made 129 appearances for the club, scoring 23 goals.
He made his senior England debut in 2012 and has scored one goal in 16 appearances.
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