Reports on Wednesday suggested Barry has been given the green light for a move to Anfield should the Reds meet the England midfielder's asking price.

But O'Neill has reiterated his determination to hold on to his captain and denied telling the 27-year-old he can leave Villa Park.

O'Neill told his club's official website: "I have not said anything of the sort. To suggest I would be happy to sell Gareth is simply not true.

"I did say that no club would want to keep an unhappy player but at no time has Gareth expressed any displeasure about his time at Villa."

O'Neill and Villa owner Randy Lerner have been attempting to persuade Barry, who has two years remaining on his contract, to commit his future to the club.

"We are doing everything we can," added O'Neill.

"We are determined to keep Gareth at Villa Park. To say that I am resigned to losing him is simply not the case."