AC Milan are preparing a new bid for Liverpool defender Dan Agger.

Rossoneri chiefs have settled on Agger as a replacement for injury-plagued centre-half Alessandro Nesta, who is facing retirement at the end of the season.

With contract talks between Liverpool and Agger's minders at an impasse, Milan are confident of landing the Dane for £7 million in June.

The defender's representatives have already been sounded out about a £3 million-a-year contract offer.