AC Milan are discussing a long-term agreement with LA Galaxy star David Beckham. The England international will be unveiled as a new Milan signing on Saturday at the San Siro after a two-month loan deal was struck.

La Repubblica says talks have been held between Beckham's management and Milan about extending his stay through to the 2010 World Cup. The midfielder's LA Galaxy contract carries a get-out clause, which Beckham can take advantage of next year.

Beckham's £4 million salary is deemed too rich by Milan chiefs, but a compromise could be struck with the Rossoneri surrendering all image rights to the former Manchester United and Real Madrid star.

Everything will depend on Beckham's initial success, which kicks off on Saturday with the exclusive to Sky Italia 'Beckham Show'. All other Italian TV have been barred from the signing ceremony, including RAI and Mediaset.