The Manchester City player can see significant improvements in the way England play since seeing little of the ball in their Euro 2012 second-round exit at the hands of Italy.
England are now gearing up for two away World Cup qualifiers with minnows San Marino on Friday and group leaders Montenegro four days later with Milner full of optimism for the battles ahead.
Milner said: "The squad is in a really good place at the moment. The longer we work with the manager, he is going to get his ideas over as well and you will see improvements in the team.
"You can see that already since the Euros. We started there from a strong base and maybe didn't quite retain the ball as well as we could have done.
"Our forward play was not as good as it could be but that's improving all the time I think we are moving forward all the time and the performances are improving as well.
"That's a positive sign. The squad is changing all the time, there are younger players coming in, but we have still got the mix of the senior players as well."
Milner has cofidence in City team-mate Joleon Lescott to fill the gap left in the England squad by Rio Ferdinand's withdrawal.
Lescott was one of England's most successful performers in Ukraine and Poland but has only had limited opportunities at City this season.
Milner said: "Joleon hasn't played loads of games for City this year but when he has done, he has played well.
"He had a great season last year, a great Euro 2012 and he will be full of confidence and ready to go.
"I don't think we will be affected by the withdrawals (of Ferdinand, Gary Cahill and Michael Dawson).
"Joleon has now come in, has played a lot of games for England and is a top player as well."
Milner side-stepped why City boss Roberto Mancini has not played Lescott on a regular basis.
He said: "That is a question for the manager but we are blessed to have a strong squad at Manchester City.
"The competition for places is always there and only the manager can decide that but when I have seen him play, he has been strong - and outstanding."
Milner has stressed the need for England not to take their eye off the game with San Marino before the more demanding challenge that Montenegro will offer.
The two sides drew 2-2 in Podgorica in a Euro 2012 qualifier when Wayne Rooney was sent off.
Milner said: "We need to make sure we concentrate on San Marino first. We know if we play anything like our best we should get a positive result.
"We have to make sure we go there and do that and concentrate fully. Then it's a tough trip to Montenegro.
"We know it well. We have been there before. It will be tough but if we play to our potential and keep improving, I am sure we will get two positive results."
Milner knows England cannot to be complacent against Montenegro this time around after letting slip a two-goal lead.
He said: "That is international football. They are a quality side. You take your foot off the gas for one minute and the game can change. The equaliser came right at the death.
"It was disappointing because we did not do the job we needed to do. Hopefully, if the same situation happens on Tuesday we can finish the job better than last time."