Chelsea's owner, Roman Abramovich, and his advisers believe the player can be bought from Milan for between £60m and £70m.
It is understood that the talks to bring Carlo Ancelotti from Milan - he was formally announced as Chelsea manager yesterday - involved discussions between Adriano Galliani, the Milan vice-president, and Chelsea's chief executive, Peter Kenyon, about Kaka. Milan's agreement to release Ancelotti from the final year of his contract was dependent upon Chelsea bidding a certain price for the player.
Kaka's wages would break the Chelsea pay structure, at the top of which are John Terry and Frank Lampard on £135,000 a week. However, Abramovich and his chief aide and club director, Eugene Tenenbaum, believe that they will have the support of Chelsea's two most famous players to sign Kaka on wages of around £150,000 because of Lampard and Terry's ambition to win the Premier League and the Champions League.
There is competition for Kaka from Real Madrid and the incoming president Florentino Perez has identified the player as one of his three major targets for the summer. However, Abramovich has been given the encouragement that Ancelotti's presence will tip the deal in his favour.