The Rossoneri are eager to lure the Brazil international back to San Siro this summer, but can only afford the attacking midfielder with the help of his current club.
Rossoneri CEO Adriano Galliani hinted at a move for the Brazil international earlier this week, with Kaka's agent confirming on Wednesday that talks have already taken place.
Nevertheless, Milan can only afford the 30-year-old with Real Madrid's help as it is only willing to offer the attacking midfielder an annual salary of 5 million euros rather than the 10m euros he currently earns.
Reports from Spain suggest that Madrid have set a 25m euro asking price for Kaka, but the Serie A side have no intention to pay such a transfer fee due to their financial difficulties. Instead, Milan hope that the Liga champion will allow Kaka to leave on loan without compensation, while also paying 50 percent of his current wages.
Both clubs have yet to meet to discuss a potential transfer, but Galliani is expected to arrange a meeting with Madrid president Florentino Perez shortly to look into the possibility of re-signing the playmaker.