AC Milan want Chelsea striker Claudio Pizarro as part of the deal for Andrea Pirlo.
The Mail on Sunday says Pirlo, Italy's World Cup-winning midfielder, is set to rejoin Carlo Ancelotti at Chelsea in the next few days.
AC Milan are prepared to accept an offer of £10million for Pirlo if they can take striker Pizarro in the opposite direction.
The Italians have been trying to hold out for £14m for Pirlo, although they are expected to lower their price tomorrow to set the transfer in motion.
All parties are confident a deal can be done because the 30-year-old is very keen on the move and personal terms have already been agreed.
Ancelotti wants Pirlo, who helped him win the Champions League twice at AC Milan, to bring stability and technical excellence to his first Premier League campaign.