The Dutchman is the red-hot favourite to succeed Massimiliano Allegri on the bench at San Siro despite competition from Pippo Inzaghi
The San Siro side are in the market for a new boss after Massimiliano Allegri was sacked on Monday morning following their 4-3 defeat to lowly Sassuolo the previous evening.
Assistant coach Mauro Tassotti has been placed in temporary charge and will oversee Wednesday's Coppa Italia match against Spezia, but Seedorf is expected to be announced as Allegri's permanent successor.
Seedorf is still an active player in Brazil with Botafogo, but has a clause in his contract that allows him to be released from his contract should an offer to coach Milan arrive.
The 37-year-old - who starred for Milan as a midfielder from 2002 until 2012, winning one Scudetto and two Champions Leagues - was already owner Silvio Berlusconi's preferred option to take the reins in the summer when Allegri was originally set to step down.
But this is likely to now be pushed forward, despite the presence of former team-mate and Milan's Primavera youth team coach Pippo Inzaghi who has many supporters in the Rossoneri boardroom.
Earlier on Monday, Seedorf's representative Deborah Martin confirmed her client's availability for the job.
"There is not much to say about everything that has been written about Seedorf, but a number of things that have been reported are incorrect," the Dutchman's agent told La Gazzetta dello Sport.
"I negotiated the contract of Clarence with Botafogo and he has a clause in his contract that allows him to leave the club without compensation on certain occasions, as long as he doesn't play for another team.
"I would also like to point out that Clarence now has all the necessary papers to coach and has taken all the steps needed in Netherlands and Brazil."
Seedorf scored 62 goals in 432 appearances during his 10-year playing career at Milanello.