AC Milan vice-president Adriano Galliani has revealed that they have reached an agreement with Carlos Tevez and that negotiations are continuing with Manchester City.
The Argentina international has been linked with a move to the Italian champions during the January transfer window and the striker himself is said to be willing to join the Rossoneri.
However, Milan want to sign Tevez only on loan until the end of the season but City want to sell him immediately.
The deal has been put into more doubt following reports that Milan's city rivals Inter Milan have also thrown their name into the hat.
Galliani, though, seems confident that AC Milan will eventually sign the 27-year-old before the end of the winter transfer window.
"We have an agreement with the player, now there's an ongoing negotiation with Manchester City and we expect an answer," he told Sky Sport Italia.
Milan coach Massimiliano Allegri, though, is less forthright about the arrival of the former West Ham United and Manchester United star to the San Siro.
"I heard yesterday from Galliani, but we did not talk about the transfer market," he told a press conference on Saturday.
"I am not thinking about Tevez because for now he's a Manchester City player.
"Do I worry about his period of inactivity (from football)? I'm not talking about players who are not of AC Milan. If and when he comes, I will take a look."
Forward Alexandre Pato has been linked with French side Paris St Germain, but Allegri has refuted suggestions about the Brazil international's departure this month.
"I believe and hope that he (Pato) remains at Milan, he could be an important 'purchase' for us since in the first half of the season he was often injured. There are no problems between him and me."
Galliani added on Sky Sport Italia: "There are no negotiations going on for Pato."