If it is a case that Manchester City are making an offer, they will know Milner wants out and it is very much a case of them making an offer, because Martin O'Neill will not give them a price to begin with and Martin O'Neill, I suspect, can be a stubborn git.
He will then reject whatever offer comes in then Manchester City will ask for a valuation. Martin O'Neill will make it quite a bit higher than the offer he has refused but it won't be an impossible figure - it will be the price Martin O'Neill will accept for James Milner. Every player has a price.
Then it comes down to Manchester City and how much they really want James Milner.