The Serbia boss feels his compatriot would be a fine addition to the Rossoneri if his proposed move goes ahead
The Rossoneri are keen to lure the 21-year-old Serbian away from his current club ahead of the 2013-14 campaign and recently saw a first offer for Ljajic rejected.
However, Milan continue to monitor the attacker's situation at Fiorentina, and Mihajlovic - who is currently in charge of Serbia - feels Ljajic would be a fine addition to Massimiliano Allegri's side.
"It will prove to be a real bargain if [Adriano] Galliani manages to sign Ljajic," Mihajlovic told La Gazzetta dello Sport.
"I know Adem really well. He has started to perform consistently under me. He has developed really well. He scores a lot of goals now and is a flexible and complete player.
"He is becoming a great player and I wouldn't let go of him if I were Fiorentina. He's worth making a financial sacrifice for. They did it before with Stevan Jovetic when they renewed his deal and could do the same with Adem."
Ljajic's current contract with Fiorentina runs until June 2014.