But it has been instantly rejected by the midlands club.
Twelve months ago City were successful in prising Gareth Barry away from Villa in a £12million deal and now their attention has turned to Milner.
A Villa spokesman said: "We have received an offer from Manchester City for James Milner and this has been firmly rejected.
"We plan to sit down with James and his representative after the World Cup to agree a new long-term deal and this remains our position."