The agent of Stephan El Shaarawy held talks with Milan on Friday in an effort to secure his client a new improved contract.
The forward, who will be 20 in October, currently earns €500,000 a season at the Stadio Giuseppe Meazza.
However, after signing him outright from Genoa in the summer, the Under-21 international wants a pay rise.
Sky Sport Italia are claiming that the Rossoneri have offered him €800,000 a term, but the player is hoping for a €1m annual deal.
Representative Roberto La Florio is expected to resume talks with the Diavolo officials at some point next week.
El Shaarawy scored four goals in 28 appearances for the club, in all competitions, last season.