AC Milan are hoping to sign Kaka on a one-year loan deal to avoid paying Real Madrid a transfer fee, La Gazzetta dello Sport reports.
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.
Milan's official website, meanwhile, have released the squad numbers for the 2012-13 campaign, with the No.22, Kaka's former number, left unassigned, fuelling further speculation that the Rossoneri are working on bringing the 2007 Ballon d'Or winner back.
However, it is believed that Milan can only afford the 30-year-old with Real Madrid's help as they are only willing to offer the attacking midfielder an annual salary of €5 million rather than the €10m he currently earns.
Reports from Spain suggest that Madrid have set a €25m 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 champions will allow the player to leave on loan without compensation, while also paying 50 per cent 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.