The 28-year-old is keen to leave City after making just 12 Premier League starts under Manuel Pellegrini this season. Milner is widely-regarded as one of the league's most industrious midfielders and the newly-crowned FA Cup winners are prepared to offer him his preferred central role in a bid to lure him to north London, according to the Metro.
The former Leeds United, Newcastle and Aston Villa star has often been deployed out on the wing during his four-year spell at Manchester City, with whom he won his second Premier League winners' medal earlier this month. But despite the recent league success, Milner is determined to nail down a first-team place away from the Premier League champions next season.
Manchester City, however, will be keen to retain his services - mainly to ensure they meet rules set by the Premier League and UEFA about meeting the homegrown player rule. With Gareth Barry, Joleon Lescott, Micah Richard, Jack Rodwell and Scott Sinclair all likely to leave the club, the Citizens will be even more determined to keep Milner at the club.
But the man they paid a reported £28.5m for in 2010 appears to have made up his mind to move on - and Manchester City may be forced to bow to his demands, knowing his chances of ousting Fernandinho or Yaya Toure in central midfielder are virtually nil.
Milner will fly to Brazil for next month's World Cup finals - and could secure a move to Arsenal, all going to plan, after England exit the competition.