Milan and Real Madrid continue to negotiate for Brahim Diaz, as there could be an option and counter-option included in the loan.
The creative midfielder was on loan at San Siro this season, scoring seven goals and providing four assists in 39 competitive matches.
It was a dry loan only, but the player and Rossoneri both want to continue together in 2021-22.
According to Sky Sport Italia, the talks are now moving towards an extended loan with option to buy for circa €20m.
However, Real Madrid want to retain a counter-option, which would allow them to pay Milan a figure to bring Brahim Diaz back to the Bernabeu in 2022.
He turns 22 in August and recently made his senior Spain debut, finding the net, while his Real Madrid contract runs to June 2025.