Alberto Aquilani will fly to Milan on Wednesday evening ahead of his move from Liverpool to the Rossoneri.
According to La Gazzetta dello Sport, terms have now been agreed between all parties and an official switch could be just 24 hours away.
The Italian international, who spent last term on loan at Juventus, will have his medical on Thursday before putting pen to paper.
The player's agent spoke to Milan earlier this week and he's now concluded negotiations with the Premiership outfit.
Aquilani will arrive on a loan deal, but Milan will be forced to buy him outright for around €6m should he play in at least 20 Serie A games for the San Siro outfit this term.
"We've signed a player with great quality," noted Milan Vice-President Adriano Galliani. "He's the right man for Milan.
"Our transfer market campaign has now come to a close."