Speaking exclusively to Football Insider, the former Tottenham and Aston Villa defender said Milner will need to leave Anfield this summer if he wants to play regular football
The 37-year-old is out of contract at the end of the season after nearly ten years with the Merseyside club.
According to The Athletic (28 April), Brighton are preparing a move to sign the midfielder as a free agent this summer.
Although Jurgen Klopp is keen to hold onto the long-serving Red, the club have given no indication of offering a new deal.
Hutton insisted Milner still has what it takes to compete at the top level.
“He still looks as fit as ever, he looks like he could play week in week out no problem,” he told Football Insider.
“Brighton are definitely on the up with a really exciting manager at the helm. I do not see why you wouldn’t want to be part of that.
“At Liverpool, Jurgen Klopp trusts him but he is not going to play every week. He is more of the experienced leader within the football club.
“It really falls down to where does he see the end of his career going? Is he quite happy to be that guy at Liverpool or does he see himself continuing to play.
“I think Brighton would be a good option but I am pretty sure Klopp will want to hold onto him.“