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Cherki's current contract with the French club is due to expire next year, and City is expected to part with a transfer fee of between $39 million and $46 million to land the talented attacker, who had also been linked with Liverpool.
The 21-year-old has been highly regarded for several years due to his fantastic technique, and he is coming off the best season of his career, having netted 12 times in all competitions, which marks the first time he has reached double figures for goals.
Cherki told L'Equipe in an interview this week that he is ready to leave Lyon.
Even when it’s hard, even when you cry, even when you’re scared, you have to go to war for your club."
Cherki's decision to join City comes after Arne Slot reportedly flew to the south of France last week to meet the player and discuss a possible transfer to Liverpool.
According to The Athletic, the Liverpool head coach briefly left his vacation to conduct the meeting before negotiations with Florian Wirtz intensified
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Liverpool will have to smash its transfer record to get a deal for Wirtz over the line, with reports suggesting it could take a bid of €150 million ($171 million) to pry the 22-year-old away from Bayer Leverkusen.
That kind of fee would not only make him Liverpool's record signing — it would also make him one of the most expensive signings in soccer history: only Neymar and Kylian Mbappe have moved clubs for bigger transfer fees in the past.
Wirtz's status as one of the most valuable players in the world is expected to be reflected in a monster salary at Liverpool, with German outlet Bild saying that his contract is set to be worth between $23 million and $25 million gross per season.
That will make him Liverpool's third highest-paid player behind Mohamed Salah and Virgil van Dijk, who are both believed to earn well in excess of $25 million per year before tax.