Milan and Fernando Torres are €2.5m apart from completing a transfer, according to the club’s official television channel.
The Rossoneri are on the lookout for a new striker following Mario Balotelli’s move to Liverpool on Monday.
All indications are that the Spain international is their first choice, but Milan Channel has insisted that a deal is nowhere near completion.
Reports earlier today were that the San Siro outfit and the Premier League side had agreed a one-year loan for the goalscorer.
However, with wages of €8m per season, Pippo Inzaghi’s team are hoping that the Atletico Madrid graduate will take a substantial wage cut to come to Italy.
Torres is thought to be willing to do that, but not to the extent Milan want.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's tipster competition - £11,000 to be won monthly!