Both Milanese clubs have reached an understanding over an exchange deal involving the former Sampdoria teammates, and the transfer could be done by the end of the day
On top of the inclusion of the 30-year-old Cassano in the transfer, Milan will also pay their arch-rivals a fee of 7 million euros for the services of former Fiorentina star Pazzini.
Milan CEO Adriano Galliani recently revealed that both clubs were in talks, and they have now come to a conclusion after further meetings on Monday.
Galliani met with Pazzini's agent Tullio Tinti in the afternoon to discuss a three-year deal worth 2.8m euros per season plus bonuses, before visiting Inter chiefs Massimo Moratti and Marco Branca in the early evening to iron out the exact details of the moves.
Beppe Bozzo, Cassano's agent, will meet with Inter on Tuesday to talk about a contract until June 2014, worth 3m euros per annum.
"We have to yet finalize the deal, but who wouldn't like a player such as Cassano?" asked Moratti when questioned by reporters on the imminent transfer.
Pazzini, 28, will travel to Milanello on Tuesday afternoon to undergo his medical at the Rossoneri, and the deal could be concluded by the end of the day.