The French midfielder appeared to be on his way out of the Rossoneri this summer, but might remain with Massimiliano Allegri's men after all if he accepts a pay-cut
The Frenchman's current deal expires at the end of the season, and there were doubts about whether the Rossoneri are willing to retain the 27-year-old after a disappointing campaign in which he featured just once due to injury.
Nevertheless, Milan still believe Flamini has what it takes to succeed at the club, and are set to offer him a deal until the summer of 2014.
However, the former Arsenal midfielder will have to accept a significant pay-cut if he is to stay at the San Siro side.
Flamini is currently on an annual salary of €4.5m, but will earn only a €1.8m per year under the terms of his new deal if he accepts Milan's offer.
The midfielder joined the club from Arsenal in the summer of 2008, and has since made close to 100 official appearances for the Rossoneri.