The Mirror says England ace Milner, 24, has told pals he has received no firm recent guarantees that Man City will return with another bid for him.
Aston Villa rejected an opening £18m bid plus £2m in add-ons from City earlier this summer for versatile midfielder Milner.
Villa are holding out for around £28m which looks hugely overpriced given England's dismal World Cup campaign after a last 16 thrashing to Germany.
Milner has told friends he has no intention of handing in a transfer request in a bid to get a move to Eastlands. But it appears Villa will have to drop their asking price for the star if he is to push through a move to City.
Milner could still end up at Eastlands as City need to boost their quota of homegrown players for this season.