The England international is set to be out of contract at the end of the season and is reluctant to commit his future to the Sky Blues amid fears about his first-team future.
Although he’s been a regular starter of late under Manuel Pellegrini, Milner has often been shifted around a range of positions to cover for other stars, with Sergio Aguero and Edin Dzeko’s recent absences having led to a role as a ‘false nine’.
Negotiations between the utility man and the Premier League champions are ongoing, and Liverpool boss Brendan Rodgers is watching with great interest.
The Reds chief is keen to pounce if there’s a breakdown, with Milner able to discuss a Bosman move next month.
Arsenal are also in the running, yet the Kop boss is hopeful that guarantees of regular action at Anfield may sway the man who cost City £26m in 2010.
The reigning English champions are, however, confident of keeping their man.