Alberto Aquilani will fly to Milan on Wednesday evening ahead of his move from Liverpool to the Rossoneri.
According to La Gazzetta dello Sport, terms have now been agreed between all parties and an official switch could be just 24 hours away.
The Italian international, who spent last term on loan at Juventus, will have his medical on Thursday before putting pen to paper.
The player’s agent spoke to Milan earlier this week and he’s now concluded negotiations with the Premiership outfit.
Aquilani will arrive on a loan deal, but Milan will be forced to buy him outright for around €6m should he play in at least 20 Serie A games for the San Siro outfit this term.
“We’ve signed a player with great quality,” noted Milan Vice-President Adriano Galliani. “He’s the right man for Milan.
“Our transfer market campaign has now come to a close.”
Massimo Ambrosini has welcomed Alberto Aquilani to Milan, but warned that nobody can substitute Andrea Pirlo.
The latter left the Rossoneri over the summer to join Juventus, the same club who opted against signing Aquilani outright following his loan spell.
However, the midfielder is now on his way to San Siro after an agreement was reached with Liverpool.
“Pirlo can’t be replaced in terms of his character and personality, but it is unjust to make comparisons,” Ambrosini told La Gazzetta dello Sport.
“Andrea marked an era here, but whoever replaces him can do well by interpreting the role in a slightly different way.
“Aquilani will be useful because he has different characteristics to the midfielders who are already at the club.
“He played with consistency and recovered his fitness at Juventus. I don’t see a reason why he wouldn’t do well here.”
The former Roma youth product is expected to officially complete his move to Milan at some stage on Thursday.
"I am delighted to have arrived here," said Aquilani. "This is a leap in my career.
"I have come to Milan to do well.
"I have different characteristics to (former AC Milan midfielder) Andrea Pirlo but this is a further responsibility for me.
"I believe I can play in all positions in midfield.
"The clause of making at least 25 appearances? It's not a problem for me and I'm not thinking about it.
"I will do everything possible to earn the trust of the club."
Throughout the entire process, his only desire has been to play football and he has put this ahead of any other considerations and at personal cost to himself. We wish him well for the season ahead."