The Uruguayan is set to join Lucio in having his contract terminated by Inter, and the Rossoneri could offer the 33-year-old a chance to prove his worth in Italy
After the termination of defender Lucio's contract was finalised earlier this week, Forlan could be the next big name to leave the Nerazzurri.
And AC Milan are set to rekindle their interest in the Uruguayan international and offer the 33-year-old a chance to remain in Milan and prove his worth in Serie A.
Milan coach Massimo Allegri could be short of attacking options next season with the impending departure of Robinho.
The Rossoneri have been linked with Salomon Kalou, Andriy Yarmolenko and Maxi Lopez but the news of Forlan's contract being cancelled could pave the way for the striker to switch between the fierce local rivals.
AC Milan's sporting director Ariedo Braida and the player's agent Daniel Bolotnicov reportedly met in May to see if there were any conditions for a transfer.
Forlan, fresh from a poor first season with Inter is believed to have a tremendous desire to prove his worth in Italy, whether at Inter or elsewhere.
The striker was behind Diego Milito and Giampaolo Pazzini in Andrea Stramaccioni's pecking order and regularly found himself starting on the bench or playing out of position, managing just two goals and three assists in all competitions.
Milan are believed to be prepared to offer the Uruguayan a two-year deal reportedly worth €4 million.