Villa tabled a bid for N'Zogbia last week as Alex McLeish looks to rebuild his squad.
McLeish has money to spend and is desperate for attacking width having seen Ashley Young and Stewart Downing depart for Manchester United and Liverpool, respectively.
But the Latics have turned down their initial approach for N'Zogbia, who has been linked with a number of Premier League clubs this summer.
Everton are understood to be ready to rival Villa for the former Newcastle and Le Havre wide man, but are yet to table a firm offer.
North-East rivals Sunderland and Newcastle have also been credited with an interest, but Steve Bruce has followed Magpies boss Alan Pardew in ruling himself out of a swoop.
Bruce told The Journal: "[N'Zogbia] is not going to happen. It has become a bit too rich for us."
Wigan chairman Dave Whelan is believed to value the talented attacker at over £10million and it remains to be seen if Villa will return with an improved bid.