AC Milan are ready to strike terms with Manchester City for Mario Balotelli.

The Telegraph says Milan are prepared to offer Manchester City an instalment-based deal which would guarantee them their money back if the Premier League champions agree to sell Balotelli before next week's transfer deadline.

Milan chief executive Adriano Galliani insisted at the weekend that City's initial valuation of £30 million was excessive, but it is understood that the Italian giants are prepared to pay the £22 million City are looking for.

The sticking point is likely to be Milan's attempts to structure the deal to pay for Balotelli over as many as six instalments.