The two clubs are keen to sign the winger, who had looked destined for the St James's Park exit this summer door after four years on Tyneside.

Neither, however, has made a firm bid, and United have made it clear they have no intention of letting the England Under-21 international – under contract at the club until 2011 – leave Newcastle.

Manager Kevin Keegan has never wanted to part with Milner, but the 22-year-old is one of his most saleable assets, and it was suggested the club would listen to offers of around £9m for a player signed by Sir Bobby Robson for £3.6m from Leeds United in the summer of 2004.

Liverpool were looking to do an exchange deal for Milner – with the likes of Jermaine Pennant and Danny Guthrie possible makeweights – while Villa, where Milner spent a season on loan under David O'Leary in 2005-06, were understood to be preparing a cash deal.

For his part, Milner is keen to know where he stands, and the prospect of playing Champions League football for Liverpool is an attractive proposition, while he enjoyed his time at Villa Park, and would relish playing for Martin O'Neill.

His representative has enquired about a new long-term contract for Milner, whose present deal – which kicked in last summer – was negotiated around 18 months ago with then chairman Freddy Shepherd.

But United, while keen to keep Milner at the club, are unwilling to open talks at this stage, with the contractual situations of Michael Owen, Steve Harper and Steven Taylor higher up the agenda, with all three out of contract at the end of next season.

Meanwhile, Newcastle's determination to hold on to Milner means the chances of a move for Tottenham Hotspur winger Aaron Lennon have receded.