Members of Paulo Henrique Ganso's entourage have arrived in Italy for talks with Milan, according to Il Corriere dello Sport.
The Brazil international playmaker is among Milan's top transfer targets this summer.
Milan Vice-President Adriano Galliani and the club's director of sport Ariedo Braida welcomed Ganso's agent Thiago Ferro to their offices this morning.
His Italian representative Gaetano Paolillo was also present to act as a mediator.
Representatives from Sonda, the third party investment fund with a 45 per cent stake in Ganso, were also reportedly in Milan on Tuesday evening.
Il Corriere understands Milan have already reached an agreement with Sonda as well as gaining the consent of the player's family who also own 10 per cent of his rights.
The next phase will see Braida fly to Brazil to negotiate terms with Santos.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's tipster competition  - £5,000 monthly.