Real Madrid and Chelsea are on red alert as AC Milan management consider cashing in on Alexandre Pato. Il Sussidiario says Milan have plans to revamp their attacking options in the summer, but need to sell to fund any big signings and are actively discussing sacrificing Pato.

Milan ACCEPTED PSG's offer for Pato last month, only for the Brazilian to turn them down.

Real and Chelsea are keeping tabs on the situation and will need little encouragement from Milan to bid for the striker at the end of the season.