The midlands club have confirmed they had turned down a "renewed offer" for the England midfielder, although they insisted it was not the £17million one widely reported earlier in the day.

Barry had raised the stakes this week by publicly attacking his manager in a Sunday newspaper, and as well as being fined two weeks' wages for that outburst he was also told not to attend Villa's first day of pre-season training.

Liverpool had previously seen three bids rejected of £10million, £11million and then £13million and the new offer was believed to be in the region of £15million. O'Neill, however, is demanding £18million.

Villa's latest statement said: "The club have received a renewed offer from Liverpool for the player but that still falls well short of Aston Villa's evaluation, and has subsequently been rejected."

Barry's absence from training will only heighten the drama over his move, with his current position at the club clearly untenable.

Barry upset O'Neill by intimating the Villa boss was more interested in being a television pundit for the Euro 2008 finals than speaking to him over his future.

He said: "It's seven weeks now since the season finished but while the gaffer found time to be a pundit for the BBC at Euro 2008, he hasn't found time to speak to me.

"The last time we spoke was just after England's game in Trinidad at the start of June - and that's it.

"It just made me think that the gaffer and the club were just saying one thing in public but were not bothered about me at all in private. What other conclusion can you reach?"