Manchester City have tabled an improved offer for the Borussia Dortmund midfielder Ilkay Gundgoan.

The Daily Star newspaper have claimed that City have upped their bid for the 25-year-old from £18 million to £21 million.

Both Liverpool and Arsenal are monitoring Ilkay Gundogan’s transfer situation according to the newspaper Express.

Arsenal are set to make major revisions to their midfield with Mikel Arteta, Tomas Rosicky and Mathieu Flamini all set to leave. Liverpool boss Jurgen Klopp has also been linked with a move for Gundogan who was part of his hugely successful side at Dortmund.

However, City are heavy favourites to sign Gundogan after City director of football Txiki Begiristain and Pep Guardiola managed to convince the Germany international of Turkish origin to join the club after weeks of talks.

Gundogan has seven assist and three goals in 40 appearances for Dortmund this season. The Bundesliga side are are in second place behind leaders Bayern Munich with 74 points in 31 games.

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