Milan would rather keep Ronaldinho until the summer than pay him a lump sum to terminate his contract in January.
It's understood that Brazilian club Gremio have already agreed personal terms with the attacking midfielder who has spent most of this season on the bench in Serie A.
However, the proposed New Year switch can only go through if Milan and Ronaldinho can agree terms over a rescission.
Some reports in Italy on Friday are suggesting that talks have begun, but there is a difference of opinion.
Given that the former Barcelona player is tied to the San Siro outfit until June, he would expect a severance package from the Italians.
That request seems to have been met with some opposition from club Vice-President Adriano Galliani.
It's understood that Galliani isn't willing to open the outfit's chequebook for such an operation given the club's position in the table.
Although Antonio Cassano is set to arrive, Galliani would rather keep Ronaldinho in the squad – and pay his wages – just in case an injury crisis strikes in the second half of the season.
Talks are set to continue.
If the player is released in January then Milan could make a move for one of two low-cost options – Cagliari's Andrea Lazzari or Chievo's Kevin Constant.