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The Serie A club have overtaken rivals Inter in the race to sign the Dutch midfielder but differences remain regarding the two clubs' valuation of the tough-tackling player

AC Milan continue to target Manchester City midfielder Nigel de Jong but have so far failed to agree a fee with the Premier League club.

City value the Dutch midfielder, whose contract is set to expire at the end of the season, at around £6.5 million, but Milan are currently willing to pay only £3m-£4m for his signature.

Milan have secured deals to bring strikers Bojan and M'Baye Niang to San Siro and regard De Jong as an ideal replacement for his compatriot Mark van Bommel, who joined PSV Eindhoven.

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Last week, Massimiliano Allegri's team overtook rivals Inter in the race to sign the 27-year-old, who is expected to command a salary in excess of £3m per season if he does complete a move to Italy.

Milan chief executive Adriano Galliani is considering a variety of bonuses and incentives that could balance a potential offer to De Jong.

A move for Real Madrid midfielder Lassana Diarra, in addition to interest in Kaka, has been abandoned, with the former Arsenal and Chelsea player set to join Fenerbahce for €5.5m [£4.4m] a season for three years.

Djamel Mesbah, Edoardo Pazzagli and Adria Carmona, meanwhile, could leave the Italian club as they look to trim their squad numbers.

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