Barry in talks with City

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Barry has been offered a lucrative new deal to remain at Villa Park beyond the end of next season - when his current contract expires - but his future has again been called into question by the confirmation from Villa that he is in negotiations with City.

It is understood Barry was having a medical on Tuesday afternoon.

Villa boss Martin O'Neill was prepared to run down Barry's contract if it meant keeping the 28-year-old for another 12 months to help with their push for a Champions League spot.

But it appears O'Neill is now happy for the former Brighton trainee to explore other options.

A Villa spokesman said: "Aston Villa can confirm that Gareth Barry is in talks with Manchester City."

City are expected to embark on a massive spending spree this summer but the fact that Barry is considering a move to join up with Mark Hughes' side still comes as a surprise.

Barry claimed last summer that his main reason for wanting to leave Villa for Liverpool last summer was to play Champions League football.

But City have not even qualified for next season's revamped Europa League with Everton, Villa and Fulham claiming the three places for English clubs.

Villa owner Randy Lerner confirmed last week that the club were in discussions with Barry regarding a new long-term deal.