Milan are reported to be in negotiations with Celtic for their 20-year-old striker Moussa Dembele, but face competition from Chelsea and Borussia Dortmund.
Sky Sports News claim that the Rossoneri have identified the France Under-21 international as a valuable addition to their strike force.
While Borussia Dortmund and Chelsea are also interested, Milan made the first approach and therefore have the advantage.
Celtic only paid £0.5m to sign him from Fulham last summer, but he scored 32 goals with nine assists in 49 competitive games this season.
That includes a hat-trick in the Glasgow Derby against bitter rivals Rangers.
Dembele found the net four times in four caps for France at Under-21 level and started out in the Paris Saint-Germain youth academy.
Milan's new Chinese owners are on a spending spree, having already signed Mateo Musacchio from Villarreal and Atalanta's Franck Kessie.
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