Milner moved to Newcastle in a £3.6m deal last July but has failed to hold down a regular place at St James'.
Kevin Blackwell has asked Graeme Souness if he can take Milner back on loan but the Magpies are understood to have turned down the approach.
But there remains a reasonable chance of a deal between now and the end of the season.
Newcastle are still in the Uefa Cup and the FA Cup and may need to make full use of all their squad in the meantime.
Kevin Blackwell has asked Graeme Souness if he can take Milner back on loan but the Magpies are understood to have turned down the approach.
But there remains a reasonable chance of a deal between now and the end of the season.
Newcastle are still in the Uefa Cup and the FA Cup and may need to make full use of all their squad in the meantime.