Multiple sources now state Rocco Commisso is leading the race to buy Milan after Yonghong Li missed an important payment.
Commisso was born in Calabria, but moved to America with his family at the age of 12.
He is the founder and CEO of cable television company Mediacom and since last year has been the owner of the New York Cosmos football club.
Sky Sport Italia, Mediaset Premium and others all maintain Commisso is in advanced negotiations to buy the club.
He is in talks with David Han Li in New York along with lawyers and financial advisors, supported by Goldman Sachs.
The other main contender is Chicago Cubs owner Tom Ricketts, but he is believed to be second in line and working with the aid of Morgan Stanley.
Yonghong Li failed to provide the €32m to increase the capital by the deadline, so it will be paid by hedge fund Elliott Management.
He has 10 days to repay that figure, or Elliott will effectively begin to call in his assets and start taking over the club.