Jade will bid farewell to Ramsay Street later this year in scenes which air on Australian screens in November and a month later in the UK.
The personal trainer's exit from Erinsborough will come as a blow to Kyle, as the couple have only recently got their relationship back on track.
Speaking to Digital Spy on the red carpet at the 2012 Inside Soap Awards, Milligan confessed: "We all know Kyle - he's not going to take it too well! But like anything, it'll take a bit of time but he'll get through it."
Asked whether Kyle will get a new love interest, he replied: "I'm not too sure, actually. With Jade gone, I think he might stay single for a while and be a bachelor. But we'll see what happens!"
Milligan confirmed that actress Colette Mann has now returned to filming as Kyle's grandmother Sheila, resulting in a "barrel of laughs" on the street.
Meanwhile, on rumours that Chris Pappas will move in with Kyle and Rhys at Number 26, the actor teased: "Possibly - maybe. I know that we do need a new housemate, so he's definitely in the running!"
Neighbours was a big winner at the Inside Soap Awards this year as the show was named 'Best Daytime Soap', while cast member Ryan Moloney secured the 'Best Daytime Star' prize for his portrayal of Jarrod 'Toadie' Rebecchi.
Reflecting on the show's success, Milligan said: "I think it's just stayed true to what Neighbours is and always has been. I think the UK fans really appreciate that, they've always loved that."
The Inside Soap Awards, sponsored by online fashion retailer boohoo.com, were held at One Marylebone in London.
Photo gallery - red carpet arrivals at the 2012 Inside Soap Awards. Get the Inside Soap magazine on your iPhone or iPad