Aston Villa have rejected an bid from City for Milner earlier this summer and are reportedly looking for £30million for the 24-year-old.
“At this moment, in terms of where we are with James, we don’t really know,” said O’Neill.
“The negotiations between Manchester City and ourselves are being conducted by our chief executive and owner and I’ll be guided by them.
“The latest stage of play seems to be Man City feel as if they have gone as far as they want to, but we will wait with baited breath on that one.”
