However, the Daily Star says Tottenham are ready to test the water and will offer £3m to take Milner to London.
Leeds United chairman Gerald Krasner said: "We are fully aware that James has the right to talk about a new deal. We have already discussed that as a board and it is our plan to tie him up because we do not want to lose him.
"We don't want to sell anyone who has come through our youth academy because they are the future of Leeds United.
"James is one of five England Under-21 internationals we have here and, with the acquisition of some players in the First Division, we believe we will have a squad that can come straight back up."