AC Milan management have already drawn up a long-term transfer budget for Ralf Rangnick.

The former Hoffenheim coach is set to replace Stefano Pioli as coach at the end of this season.

Gazzetta dello Sport says Milan are waiting for Rangnick to negotiate a release from his Red Bull deal, where he is currently their football director.

Milan have put together a three-year transfer budget, with €75m available for this summer market plus half of any money raised from player sales.

Rangnick is expected to be named 'manager' in the style of British football, where he will also have control of transfer policy.