The Blues host the Gunners on Sunday and are looking to return to winning ways following Champions League exit and losing at Stamford Bridge after taking foot off the gas
City host the Gunners on Sunday looking to respond to their 2-1 defeat at Stamford Bridge with their lead at the top now cut to two points.
The Blues could start the match in second place should Manchester United win at QPR earlier in the day.
But Mliner has warned the Gunners that they will be looking to make amends for their defeat at Stamford Bridge with a win at the Etihad Stadium.
"We are pretty devastated but it adds even more incentive for us to bounce back from this disappointment and put it into a performance at the weekend,” he told reporters.
"We will learn what we can from this game and move forward. We have the hunger to go and win again at the weekend."
Milner also admitted that City had eased off against Chelsea, despite taking a second-minute lead thanks to Mario Balotelli, but he believes that the Citizens were unlucky not to receive a penalty for a foul by Jose Bosingwa on David Silva.
"We started very well, moving it around and managed to create a few chances. But we took our foot off the gas for whatever reason,” he said.
"That gets the crowd up and they managed to ride that wave."
On the penalty incident, Milner added: "David said it was definite. We came in at half-time and the lads have seen it on video. It's obviously a big moment."
Team-mate Pablo Zabaleta also stated that the loss was disappointing but he is happy to see City at the top of the table and is hoping for a response on Sunday.
He said: "We're the leaders with an advantage in the table and that's important. The concerns are for our rivals.
"The week not was positive with the Champions League and the defeat in London but now is the time for a reaction and show we want to be the champions.
"We must focus on the match against Arsenal. It is a chance for us to distance ourselves from another title rival."
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