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AC Milan are closely monitoring the situation of Liverpool's Alberto Aquilani, according to La Gazzetta dello Sport.
The 27-year-old is surplus to requirements at Anfield and initially appeared to be on his way to Fiorentina.
Fiorentina would prefer to take Aquilani on loan, while the player has set his sights on a permanent move. Although the Italian's agent is adamant that the deal could still go ahead, the midfielder is believed to be looking at other options and would be open to a move to San Siro.
AC Milan are eager to add some fresh impetus to their midfield ahead of the 2011-12 campaign and have previously been linked with players such as Ganso, Marek Hamsik and Riccardo Montolivo.
When asked about a possible move for Aquilani, AC Milan CEO Adriano Galliani refused to extensively comment, but hinted that the Liverpool man could be an option: "Aquilani our 'Mister X'? Well, that could happen," he remarked.
Nevertheless, AC Milan will not make a move for Aquilani just yet, as Galliani revealed earlier this week that the Serie A champions will only approach a new midfielder in the closing stages of the transfer market in an attempt to get their man for a reduced price.