The 20-year-old midfielder set to complete a move to Villa parkafter the clubs agreed a deal, only for the Magpies to change their mind and recall him at the last minute. "We are disappointed because of the lateness of the decision," O'Neill told the club's official website. "Newcastle are entitled to do what they did, but we are disappointed because it came so late in the day. We tried right up until midnight to keep the deal alive. Some transfers are dependent on other transfers and we think that might have been the case with this one and that's why it never materialised."
Milner made 27 league starts while on loan at Villa Park last season and was keen to return on a permanent basis. Newcastle accepted a £4m offer to make the switch permanent and he had agreed personal terms when the Barcodes decided to call off the deal.