Sheffield Wednesday boss Chris Turner said that they had missed out on landing the goalkeeper as he had agreed a three-year deal with City, but both Tigers chairman Adam Pearson and manger Peter Taylor deny that this is the case.
City had looked at the Australian when Alan Fettis picked up a knee injury earlier in the season, but instead took Michel Kuipers on loan from Brighton.
But the reports that City had agreed terms to bring Milosevic are said to be unsubstantiated.