AC Milan are ready to outbid Manchester United for Lazio midfielder Sergej Milinkovic-Savic.

La Stampa says Milan are preparing a whopping £107m transfer package for Milinkovic-Savic as they look to beat Manchester United, Chelsea and Juventus to the midfielder's signature.

The Rossoneri are willing to offer Lazio an initial £35.6m loan fee, with an option to sign the 23-year-old permanently later on for a top-up fee of £71.2m.

If the proposal is accepted, it would come as a blow to United and Chelsea, both of whom were said to be interested in adding Milinkovic-Savic to their ranks.

Lazio's Serie A rivals Juventus remain keen, but have yet to put together anything to rival the package set to be offered by Milan.