Kaka's father arrived in Milan on Sunday to discuss terms with Rossoneri officials.
Sport Italia says Milan are asking Kaka to take a massive pay-cut on his Real wages to return to Italy.
The Rossoneri are prepared to hand Kaka a three-year deal, but only for a fraction of his current €9 million salary. The other stumbling block is a compensation clause involving adidas.
It's suggested Kaka would have to pay a large penalty clause to adidas should he leave Real.