Italian sources claim that Milan vice-president Adriano Galliani is currently in the French capital conducting negotiations with PSG, who are readying a mega bid for the Brazilian defender.
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"Our financial situation is bad, there is nothing I can do about Thiago," he is quoted by La Stampa as saying.
"I have been offered €46 million."
The 27-year-old, who joined Milan from Fluminense in 2009 in a €10m deal, made 36 competitive appearances this season.