The Serbia international has reportedly agreed personal terms with the Rossoneri but his current club insist their valuation has not been met by the initial bid
Fiorentina have revealed that they have rejected an offer from AC Milan for Adem Ljajic.
Milan have reportedly already agreed personal terms with Ljajic over a five-year deal worth €2m per season and are willing to pay €8 million (£6.95m) for the forward.
However, Fiorentina president Andrea Della Valle insists the Rossoneri must increase their bid if they are to prise the Serbia international away from Stadio Artemio Franchi.
"Their offer is not high enough," Della Valle told Gazzetta dello Sport.
La Viola also claim Ljajic has expressed a desire to stay at the club as they look to extend his current contract beyond 2014, but warned he will be sold if he does not accept the proposed terms for his new deal.
"The player has expressed his willingness to stay. Let's just see what he's going to ask for in terms of wages," Della Valle continued.
"Let it be clear, though, that if he doesn't accept our offer, then he goes onto the transfer market. We're not going to have the scenario we had with Riccardo Montolivo again.
"Ljajic has got to understand that we've got to keep an even wage structure. Next week, there will be a meeting between my men and the player's entourage."
Ljajic joined Fiorentina from Partizan in the summer of 2010 and has since established himself as an important part of the first-team squad.