It all really depends on Mancini. If he rates Milner enough and sees him as a key element to his team building, then he will pay it. If not, then Milner should realise that he was nothing more than a squad player if he had jioned.
If a manager rates a player, he will pay the rate thats being asked. If not, then he simply looks elsewhere.
Personally, i think this deal is proberly half done. I think we have agreed to sell Milner, but the problem lies in the valuation of player(s) coming our way, and their likely demands.
If true about Ireland wanting Liverpool above us, then i think thats an indication of the problems that are holding up this deal. Man City will have thier own ideas on whom to offer, and we will proberly have a completely different list.