Aston Villa allowed Nolberto Solano to return to Newcastle United last night but received compensation in the shape of a #1.5 million fee and the use of James Milner, the England Under-21 international, on loan until the end of the season.

David O?Leary, the Villa manager, had begun the day by tying up a deal to sign Eirik Bakke on loan from Leeds United until the end of January. O?Leary, among the most active managers on the final day of the transfer window, had previously had Bakke and Milner at Elland Road.

Opinion among Villa supporters was divided, for Solano was easily the team?s most effective and creative player last season. On the other hand, the club has sold a 31-year-old player at no loss ? they signed him from Newcastle for #1.5 million in January 2004 ? and acquired one of the brightest teenagers in the Premiership.

Birmingham City failed in an attempt to sign Michael Ball, the England international left-back, from Rangers and the player instead opted to join PSV Eindhoven on a two-year contract. After holding talks with Ball, Birmingham could only offer the player a deal until the end of this season.

Speculation that Liverpool were trying to sign Matthew Upson, the Birmingham defender, for # 6 million proved to be false.

West Bromwich Albion were also inactive and, like Birmingham, must make do with their squad at least until the transfer window reopens in January.

Solano?s departure will surprise many. He left Newcastle under a cloud during the final year of the Sir Bobby Robson era and few expected him to return to St James? Park.

Initially this summer, he was the subject of interest from Liverpool ? Solano even expressed a desire in moving to Anfield ? but the European champions turned their attention elsewhere, leaving Newcastle to take advantage of any uncertainty.

There is little doubt that O?Leary and Solano have fallen out and the manager was reluctant to keep hold of a player who might ?sulk?.

O?Leary said: ?Nolberto has now gone to Newcastle but in return I think we have a very good player as his replacement. I worked with James at Leeds and I know what an

exciting prospect he is and I am sure that the Villa fans will immediately see the benefit of James arriving at Villa Park.?

Interestingly, O?Leary would not comment about Solano?s departure.

Newcastle confirmed Solano?s impending arrival although with time running out before the closure of the transfer window at midnight they were working desperately behind the scenes to complete the deal.

The former Boca Juniors winger was signed by Kenny Dalglish for #2.5 million in August 1998 and proved popular among Newcastle supporters.

However, he fell out with Sir Bobby Robson over his frequent and lengthy trips to South America to represent the Peru national team after at one point agreeing to put his international career on hold, and he was eventually sold to Villa.

Graeme Souness, Robson?s replacement, attempted to resign Solano during the January 2005 transfer window and has finally proved successful.

Milner made his Premiership debut at the age of 15, for Leeds in 2002, and was tipped for full England international honours. Having been loaned out to Swindon Town while with Leeds, he has not made the expected progress with Newcastle.

Bakke, a versatile midfield player, became O?Leary?s second signing for Leeds on a five-year contract from Sogndal or Norway for #1.75 million in May 1999. He has struggled with injury in recent seasons but has done enough to suggest that he can play a part for Villa.