The veteran striker is a free agent and in talks with Milan about a contract. The Rossonero see Mandzukic as cover for Zlatan Ibrahimovic.
Tuttosport says Milan are prepared to offer a six month deal for Mandzukic to prove his fitness and form before discussing a longer contract into next season.
Milan's owners Elliott Management have cleared a proposal of €1.5m for the six months to be tabled to the veteran.
Mandzukic has managed just a handful games in the last 12 months while playing in Qatar with Al Duhail.