Tuesday’s loss in Naples leaves City’s hopes of reaching the last 16 of the continent’s glamour competition hanging by a thread, but the midfielder backed the squad to rally and come back stronger.
“We're a strong group of players, mentally as well. We still have confidence in ourselves,” Milner told Skysports.com. “This is a massive disappointment but it's all part of football.
“You have to deal with disappointments, move on from them and make sure you learn from your mistakes. That makes you a stronger and better team.
“It's a learning curve for us. We have to make sure we bounce back from this but learn from it also.
“We're disappointed but we will pick ourselves up and go again on Sunday at Anfield and make sure we bounce back with a good performance and get a win.”
Roberto Mancini’s men could see title rivals Manchester United close the gap on them to just two points if they beat Newcastle on Saturday, but Milner insists they will pay no attention to those around them.
“We're not really worried about what other teams are thinking. We've got some big games coming up and it's going to be massive on Sunday,” the England man declared.
The 25-year-old added that immediately facing another big game helps to move forward from their off-day in Europe.
“That's the pleasing thing - we've got games every few days,” he said.
“We don't have an international break to think about the defeat, we're straight back at it and hopefully we can bounce back with a victory.”
Milner has appeared in 16 of a possible 20 matches for City so far this season.
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