"He was the last person to have the captain's armband in the last England game - so the offer Liverpool have made is just not acceptable even though they have upped it," the Villa bos said on Match of the Day last night.
"I think it might be difficult to keep him because he has more than intimated to me that he fancies going to Liverpool so it's a big setback to us.
"It's very frustrating. We finished sixth and he played a major part in that and it was just looking like we could improve matters, because the club is capable of doing that.
"Look at Manchester United, struggling to keep hold of Ronaldo. That leaves the rest of us in a bit of trouble.
"But that's what you're in football for, you want to try and get there [top four] and if it's without Gareth Barry, we'll still have a go."
