Stephan El Shaarawy “will probably achieve his dream of playing for Milan today,” said the Genoa talent's agent.
The Italy Under-21 international is set to make the move in a co-ownership deal worth €7.5m cash plus half of midfielder Alexander Merkel.
“I go to Genoa to gain experience, but will return to Milan stronger than before,” said Merkel in confirming the deal.
El Shaarawy spent this season on loan at Padova and was extremely impressive, taking them to the Serie B promotion Play-Off Final.
“He has the Rossoneri in his heart and from today also on his shirt,” noted agent Roberto La Florio.
“Adriano Galliani never lets talents like this slip away! Milan wanted him more than anyone else and I can guarantee the deal would have been done even if Merkel didn't accept a move to Genoa.
“The only thing that Merkel changes is the financial cost of the operation. Milan have taken the ‘Little Pharaoh' in a co-ownership deal and he will immediately join the club without any further loans.
“Milan and Genoa will meet on Saturday afternoon and everything will be made official then. This season half of Europe came to view him at Padova, as all the top clubs sent scouts, but Milan moved quicker than anybody.”
The 18-year-old, who has an Egyptian father and Italian mother, could see his medical delayed by a couple of weeks, as he is currently undergoing his exams.
There are reports that El Shaarawy will spend pre-season training with Massimiliano Allegri and the first team, including a trip to China for the Italian Super Cup against Inter in August, before deciding if he'll be loaned out or kept at San Siro.
Think you know your Italian football? Share your knowledge, tips and comments to win cash prizes in OLBG's tipster competition  - £11,000 to be won monthly!