Sources in both Italy and Spain suggest Milan refused the Valencia request to pay €20m for Yunus Musah and are sticking to their offer of €18m plus €2m in bonuses.
The deal is essentially done for a total fee of €20m and a medical is expected early next week to finalise the transfer.
It was done after Valencia agreed to drop their asking price from €25m to €20m, acknowledging the American midfielder had his heart set on Milan, ready to reject proposals from West Ham, Fulham and AS Monaco.
According to Sky Sport Italia and Relevo this evening, the Spaniards had asked for Milan to make an extra effort and pay a guaranteed €20m upfront.
However, the Rossoneri stuck to their guns and have never gone above their valuation of €18m, only adding €2m in performance-related add-ons.
The 20-year-old is able to register as an EU player in Serie A because he has four different passports.
He was born in New York and plays his international football for the United States, but he moved to Italy as a baby and remained there until the age of 10 when moving to England.
Musah therefore has citizenship in the United States, Italy, England and Ghana, where his family originates from.