Eurosport - Thu, 22 Jul 14:06:00 2010
The England international has been courted by City since the end of last season, and the Eastlands club had hoped to wrap up a deal for the 24-year-old before he left for the World Cup in June. However, Villa rejected City's £20 million offer, as it did not meet their valuation.
Milner has rejected the offer of a new contract at Villa, who he joined from Newcastle two years ago, and has made it clear to his current manager that he sees his future at Eastlands.
O'Neill said: "I had a conversation with James before the World Cup and he intimated that he'd like to go.
"I'd imagine things will be resolved in foreseeable future.
"City made an offer but it did not meet our valuation.
"I'm sure matters will be resolved soon. James is back next week having had extended holiday."