England Under-21 international winger Milner will return to St James' Park on Monday for the first time since O'Neill spent £12million to sign him in August.

The sale played a part in Kevin Keegan resigning as Newcastle manager but all O'Neill is concerned with is that Milner is now on the Villa payroll and playing a key role in their challenge in the Barclays Premier League and UEFA Cup.

O'Neill said: "My own view is that if James had been given a new contract at Newcastle I think he would have stayed.

"James had played a lot of games for Newcastle and if they were stalling on a new contract we had a great opportunity to get him in.

"The offer from Villa was too good for Newcastle to turn down and James is worth every penny of the fee.

"I think he is doing very well for us. He conjured up something from nothing for the second goal against Blackburn Rovers on Wednesday. It was fantastic.

"James working hard for a football team becomes second nature to him as it does with the likes of Ashley Young.

"He has good energy, great determination, good skill and will definitely improve.

"I have no doubts about James. As a character he is top class.

"It says a lot for James that after telling him there were offers on the table for him he still wanted to play for Newcastle in their Carling Cup game against Coventry and he was brilliant.

"What I find terrific about both James and Ashley Young is that they will work back for you.

"They can pick up the ball and having done that they are prepared to gallop 40 yards forward and that is terrific."

O'Neill needs to see all his players showing that kind of energy after admitting they looked jaded during Wednesday's win against Blackburn.

Villa's fitness will be pushed to the limit next week as they follow the game at Newcastle with a UEFA Cup tie at Slavia Prague on Thursday before returning to Premier League action against Middlesbrough at Villa Park on Sunday.

O'Neill added: "We have got a hard week coming up. We know that the game on Monday will be difficult, we know the game out in Prague will be exceptionally difficult as well. Then we follow that up with a game against Middlesbrough.

"The players who have played a lot of games will stay off until Sunday.

"That is the best we can do and I am hoping that in the next couple of games some of the players who do come in will step up to the mark and try and keep us going.

"It might be a chance for other players to come in and prove their worth."