Milan have made a fresh offer of €42m plus a 30% sell on for Atletico Madrid forward Angel Correa, report El Mundo Deportivo.
However, the report adds that Atleti are still demanding the €50m valuation for the Argentine forward as an impasse continues.
Earlier this month, Diario AS cited reports from Italy that the Rossoneri have offered €40m for the player, while he will replace Patrick Cutrone - who has joined Wolverhampton Wanderers.
The Argentine had become a crucial part of Atleti’s attack since joining from San Lorenzo in 2015, making 178 appearances under Diego Simeone.
However, despite being under a long-term deal at the club until 2024 he is an increasingly peripheral figure in the squad and with just 30 goals over four years, now looks set to be moved on.
Tottenham and Wolves were also previously said to hold an interest in the player who looks set to leave Los Rojiblancos this summer, although the club are likely to negotiate well below the player’s €100m release clause.
Atleti have already broken their club record signing to land Benfica star Joao Felix this summer in a €126m deal, while they have also been heavily linked to Real Madrid playmaker James Rodriguez.
Alvaro Morata, Diego Costa and Thomas Lemar are also in contention for starting roles in the side’s attack while Ivan Saponjic has joined from Benfica.
Rodrigo Moreno is set to join Atleti from Valencia which means Correa will now be sold.