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The Blucerchiati's request to have the player's contract terminated was not approved by an arbitration panel and president Riccardo Garrone has revealed there is a possibility the 28-year-old could return to the team.
"I don't know if Cassano will go to Milan," he said, according to calciomercato.it.
"[We will] announce in the coming days some news about the possibility of reintegrating him into the squad."
Earlier on Friday, Rossoneri vice-president Adriano Galliani suggested a deal was in the works, but that the club would not pay the €5 million clause imposed by Real Madrid.