The Daily Mirror report that Toon chairman Freddy Shepherd was shocked when Leeds re-opened talks about the teenage striker and came up with the figure.
Leeds are supposedly willing to sell Milner because they still have to pay off large debts, but the price tag has increased from that agreed with Tottenham just over a month ago.
Milner did not want to join Spurs but may be interested in joining up with Sir Bobby Robson's team.
The deal, first revealed in mid-May, could be revived quickly if Newcastle find a buyer for Frenchman Laurent Robert.