Real Madrid and AC Milan are battling for Chelsea midfielder Michael Ballack.

The Germany international was in the stands for last night's 1-1 draw with Champions League opponents Rosenborg and will be free to join either Real or Milan's Euro push should he leave the Blues in January.

AS says Real are willing to offer Ballack £2.5 million-a-year, which is less than half his Chelsea wages and Milan are prepared to outbid their Spanish rivals by offering the German the same terms as Kaka, £3.75 million-a-year.