Some reporters suggest Milner is to be transfered for big bucks ... but the Villa boss was not going to see much of it for transfer funds.
O'Neill: "I have enjoyed my time at Aston Villa immensely. It's obviously a wrench to be leaving such a magnificent club.
"I would like to pay tribute to the Villa players, my coaching staff and the Villa supporters for all the support and encouragement they have given both the club and me personally during my time as manager.
"I wish them all the best for the future. I will obviously be assisting the club in the immediate short-term with regard to the handover of my duties."
A club statement on Monday afternoon said: "Aston Villa can confirm that Martin O'Neill has resigned as manager of the football club with immediate effect.
"Kevin MacDonald, reserve team manager, has assumed the role of caretaker manager and will prepare the team for the opening Barclays Premier League game of the season against West Ham on Saturday at Villa Park."