Villa are upset that Atletico's president, Jesus Gil, approached Milosevic without seeking their permission before he was transfer-listed after his spitting outburst at Blackburn.
Gil was heard on Spanish radio claiming Atletico, Villa's opponents in the Uefa Cup quarter-finals next month, had reached an agreement with the Serb to join Atletico at the end of the season.
Milosevic said yesterday that he is prepared to risk missing out on playing in the World Cup finals with Yugoslavia by deciding not to play for Villa.
Milosevic said: "If I am not playing for Aston Villa then I will not be in the national team. That's the policy that is adopted back home. It will be a big disappointment if I don't go to France - but I am willing to take that risk."
Blackburn Rovers completed the signing of the Scotland Under-21 defender Callum Davidson yesterday, paying St Johnstone pounds 1.75m.
Marcus Gayle, of Wimbledon, and Portsmouth's Fitzroy Simpson both scored as Jamaica defeated El Salvador 2-0 in Los Angeles on Monday to move into the Concacaf Gold Cup semi- finals, where they meet Mexico.Reuse content