The England midfielder, who scored in Sunday’s 4-2 win at Swansea City, is out of contract at the end of the season and has already drawn interest from Liverpool and Arsenal.
But Sportsmail understands City, privately stung by criticism from some that they are not doing enough to retain the services of the 29-year-old, have put a four-year deal on the table with a basic salary of £135,000-a-week that can rise to £165,000 with incentives.
As revealed by Sportsmail on Monday, Milner will meet advisers this week to discuss his next step.
He wants assurances over playing time in his favoured central midfield position and sources close to him say the decision will be based ‘purely on football reasons’.
Milner has played 2,544 minutes and made 27 starts for City compared with 2,343 and 23 last season when the club, who reached the Capital One Cup Final, played more matches.
He has also started all six of Manuel Pellegrini’s side’s matches against top-four opponents and made the first XI in six of eight Champions League games compared with three of eight last term. The Leeds-born star has attracted interest from abroad with both Milan clubs, Roma and two unnamed Spanish outfits expressing an interest.
A move away from the Premier League, however, is unlikely, leaving City, Arsenal and Liverpool the runners in a three-horse race.
Milner recently became a father and would prefer to stay in the country.
Sources close to the player say he is ‘torn’ over his future and is keen on continuing to play Champions League football – although that may not rule out Liverpool, who failed to qualify for this year’s competition, should manager Brendan Rodgers be able to convince Milner he will be first choice in the middle of the park.
Arsenal’s London location is also not thought to be an obstacle with the player happy to move south should he decide to leave City, who he joined from Aston Villa for a reported fee of £26m in 2010. Milner will review his options at the weekend although his decision is not expected until June.
The player may well want to delay making his choice until he sees what moves the interested parties make early in the transfer window.
Milner’s situation is also complicated by a hectic schedule.
After City bring the curtain down on their campaign by hosting Southampton on Sunday, they head out to Canada and the US for a mini end-of-season tour.
Not long after returning Milner will then join up with the England squad for the friendly with Ireland in Dublin on June 7 and the Euro 2016 qualifier in Slovenia on June 14. — Mailonline
Pellegrini’s future may also impact on Milner’s decision, although the Chilean is expected to remain in charge at the Etihad Stadium for at least another season. — Mailonline