O’Neill is ready to quit Villa if the club decides to sell Ashley Young this summer.
A source close to O’Neill told the Sunday Mirror: “Martin intends to build on Villa’s from last season and the sale of key players at the club would severely undermine his ambitions.
“Young is priceless to Martin and if there was any attempt to enter into negotiations over his sale behind his back he would feel completely undermined and put in an untenable situation at the club.
“The Milner situation is completely different. He has two years left on his contract and intimated that he wants to leave and has no intention of signing a new deal at Villa Park.
“It makes financial sense for Villa to consider selling him.”