The Argentina international has been a long-term target for Milan and could move to the San Siro in a swap for Ricardo Oliveira.

Controcampo says Real want to sign the Brazil international permanently and Milan are exploring the prospect of Milito being included as part of the deal.

Should Milan sign Milito, it's understood they will immediately offer him to Genoa in exchange for full ownership of Marco Borriello.

Milan coach Carlo Ancelotti, yesterday, admitted he saw Borriello leading his attack next season.

"There would be a much better and more balanced pairing between Pato and Marco Borriello, as they have different characteristics, yet they are compatible," he said.