With both Robinho and Alexandre Pato set for a return to Brazil, the Rossoneri are in desperate need of attacking reinforcements.
La Gazzetta dello Sport understands the Italian giants have made Palermo’s Josip Ilicic their number one target.
Milan officials believe good relations with Palermo CEO Pietro Lo Monaco will help them close the deal taking the Slovenian midfielder to San Siro.
Boss Max Allegri and his technical staff also believe the Slovenia international would be a good addition to the squad at San Siro.
Josip Ilicic has managed to rediscover the form that saw him become one of the most sought-after players in Italy, scoring 4 goals in 16 Serie A appearances this season.
The player is open to leaving Palermo for a bigger club and this could be the right time to leave given the Rosanero are currently in the relegation zone.