Milan chief executive Adriano Galliani has confirmed the club is in talks to re-sign Mario Balotelli on loan from Liverpool.
The Italy international moved to Anfield from San Siro in 2014, but struggled for form during his debut season with Liverpool and has not featured this term.
Balotelli was not part of Liverpool's pre-season tour to the Far East and Australia and seems all but certain to leave the club.
Having spent one-and-a-half seasons with Milan before heading back to England, Balotelli now looks set to return before the end of the transfer window next week.
"There are on-going negotiations with Liverpool for a loan, but we have not reached an agreement on wages," Galliani told Sport Mediaset.
"If he were to come back to us, he has to realise that this is his last chance. I hope he understands that."
Milan has also been linked with its former striker, Zlatan Ibrahimovic, in recent weeks, but Galliani played down the prospect of signing the Paris Saint-Germain star.
"Ibrahimovic is a dream - it's very difficult and it always was. I don't think PSG will let him go," he said.