AC Milan are watching Karim Benzema's situation at Real Madrid.

Calciomercato.it says Milan's imminent new owners Sino-Europe have identified Benzema as a potential marquee signing for the summer market.

Benzema has also been linked with Arsenal and PSG amid claims he will be sold at season's end.

However, the present Milan board believe they have an advantage thanks to their strong relationship with Real.

While no final decision has been made, Real are expected to seek €50 million to sell Benzema.