The 19-year-old is reportedly close to the San Siro exit door, with the Dutch club prime favourites to seal his signature, despite interest from the Premier Leaguehere.
FC Twente chairman Joop Munsterman will head out to Italy to meet Inter regarding the possible transfer of Luc Castaignos, according to De Telegraaf.
The 19-year-old made the move to San Siro from Feyenoord last season. While impressing early on, he failed to secure playing time; making only six Serie A appearances as the Nerazzurri finished a lowly sixth.
Both Twente and Premier League outfit QPR are reportedly interested in the Netherlands youth international, who is linked with a move away from Milan.
The report states Castaignos has already reached an agreement with the Dutch club to return to the Eredvisie, with a four-year contract and €5 million (£3.9m) deal mooted.
QPR have also submitted a bid, thought to be around €4 million (£3.1m), which was rejected earlier this week by the Serie A giants, despite reported interest from a host of Premier League clubs including West Ham and Everton.
However, Munsterman believes that a potential transfer will not be straightforward, as he seeks to iron out the final details of the contract.
"We will meet with Inter at the [negotiating] table. It will not be so easy," the club supremo was quoted as saying by De Telegraaf.
Munsterman had earlier revealed Castaignos' wish to play in Enschede next season.