Milan and Palermo will meet on Monday to discuss the possible transfer of Djamel Mesbah to the Rosanero.
The 27-year-old left-back is available for a move despite only joining the Diavolo in January from Lecce.
Milan had struck a deal with Torino earlier this summer for the player, but the Algerian rejected such a switch.
Milan directors Ariedo Braida and Adriano Galliani will have a business lunch with Palermo’s Giorgio Perinetti today to discuss terms.
Palermo need a new defender after they sold Italian international Federico Balzaretti to Roma.