I think it's another wet dream of Slick's, Punt.
Unlikely Sinclair will get much time on the pitch for City now, with his best chance being the Europa Cup, but I think the move would have to come from Sinclair himself, as Mancini's recent transfers look questionable. Getting rid of someone with so few minutes on the pitch to prove himself, would leave the manager open to further criticism. He may possibly not be playing him to facilitate a move by the player, but the other issue of excessive wages of City cast off's also becomes an issue.
I think Sterling will sign a new deal, although it may take a few games sitting on the subs bench in January before he signs. The one advantage he has at LFC, is the knowledge he will get games, which he could not be certain going to the top 3/4.
He gets a 500% bonus if he plays a Prem game. I wish other players contracts were framed in a similar way, with a lower basic, with enhancements for performance.
The fact that we are trying to resign Ince, makes the thought of Sterling going even more remote in my opinion.
Like all players moves though, we are clueless what the knob head agents are telling the players.