The Mirror says City have told Milner he is going nowhere, despite several rival clubs, including Aston Villa, being prepared to offer him an Eastlands exit.
Milner, 25, joined City last summer in a £26million switch after a brilliant season in Villa's central midfield but struggled to establish himself as a first choice in Roberto Mancini's side last term.
He scored only once - at Leicester in the FA Cup - and was an unused sub in the FA Cup Final win over Stoke.
Milner was also frustrated at not getting many opportunities in his favoured central role.
He is aware he needs more games to maintain his place in Fabio Capello's pecking order for England.
In total, SIX Premier League clubs are chasing Milner.
The star is considering his future as he wants regular action, including Champions League games, to retain his England slot.
But City are insisting Milner must stay and do not wish to even consider selling him to an English top-flight club.