Manchester City's lack of Champions League football may see them gazumped for Aston Villa midfielder James Milner.

The Times says As Liverpool discovered to their cost over Gareth Barry, the former Villa midfield player, Villa boss Martin O'Neill will dig in his heels if required and will not let Milner leave for a penny below his asking price. O'Neill may even demand that Milner submit a transfer request if the player signals his desire to leave.

Chelsea are also keen to bolster the number of home-grown players at the club before the implementation of new rules governing how many foreign players over a certain age can start matches and would be interested in Milner. They are also aware that they have an ageing squad that needs an injection of young talent.

Manchester United cannot be entirely ruled out of the equation, either. Sir Alex Ferguson, the United manager, has spoken glowingly of Milner in private in recent weeks, although he must weigh up whether he is prepared to enter a potential bidding war with two of the richest clubs in world football.