Ronaldinho has agreed initial terms with Milan according to his agent and the Italian giants.
The 28-year-old Brazilian has struggled for form at the Camp Nou this season and misses the rest of the campaign because of a leg injury.
His agent, and brother, Roberto de Assis, and Milan are now set for further talks with Barcelona. Spanish and Italian reports have speculated that a €20-30million transfer fee could be tabled, with Ronaldinho buying up the rest of his Barca contract.
Manchester City had hoped to pursue a deal for the South American but it would now appear he is on his way to Italy.
"In general, Ronaldinho and Milan are in agreement," de Assis said to Gazzetta dello Sport.
Gazzetta claims a deal until 2012 - worth €8million-a-year - is in the pipeline and will be concluded once a few outstanding clauses are agreed.
But the playmaker may have to wait to make his San Siro debut because the transfer cannot officially go through until the end of the season.
"There is a general agreement with the player. Now a deal has to be reached with Barcelona. Give us time," Milan's chief executive Adriano Galliani said.
Milan are currently fifth in Serie A and in danger of missing next year's Champions League after a poor season and lacklustre performances from strikers Ronaldo, Alberto Gilardino and Kaka.