Villa boss Martin O’Neill is preparing a £10million bid for Newcastle’s James Milner – while facing up to the possibility of Gareth Barry leaving for just £2million next summer.
O’Neill is eager to make Milner his eighth signing of this transfer window and take his summer spending to a hefty £46million.

It emerged yesterday the England U21 star, who spent a season on loan with Villa in 2005/06, handed in a transfer request last week, because he feels he is worthy of an extended and improved deal.

The Magpies’ hierarchy are unwilling to meet his demands, as he only signed a four-year contract last summer and are prepared to do business – if Villa sufficiently up their previous £9m bid.

Milner’s sale would be sure to anger United manager Kevin Keegan, who has insisted he is desperate to keep hold of the midfielder.

The PFA, who represent Milner, have expressed their disappointment that Newcastle made his request public.

O’Neill said: “Am I a fan of Milner? He nearly signed two years ago but it didn’t materialise. But I never think anything is done and dusted until anything happens.”

Milner’s arrival would boost what already looks a strong midfield, following the announcement Barry will stay until January at least.

While the Barry news is certainly positive in the short term, Barry is not prepared to discuss a new long-term contract until next summer, which leaves him in a very strong bargaining position.

By that time he will be able to invoke FIFA’s Article 17 clause to buy out the last 12 months of his contract and move abroad for just £2m – a staggering £16m less than Villa’s current valuation.

O’Neill insists the window’s closure on Monday would not come as a relief, admitting it would not necessarily represent the end of the saga.

He said: “I’m not a believer in this sort of system. If you knew that you were at least going to hold onto your players, then that might be something.

“If you get four or five injuries to your team, you couldn’t go into the transfer market between September and December.”