AC Milan vice-president Adriano Galliani claims Manchester City have given their permission for talks to be held with Carlos Tevez's advisors.
The Rossoneri are understood to have already met with one of the Argentine striker's representatives, Kia Joorabchian.
Talks were held last week, with Tevez desperate to find a route out of the Etihad Stadium.
City have made it clear that he has no part to play in their future, and the South American is currently back in his homeland.
The Blues are prepared to sanction a sale if the terms are right for them, and Milan are leading the chase.
Galliani has previously stressed that the Serie A giants would only be interested in a loan agreement, but a deal which includes the right to buy next summer could be put in place.
"Tevez is a City player," Galliani said to Gazzetta dello Sport.
"The English club has authorised us to speak to his agent but we haven't spoken directly to City yet.
"We don't know what City want.
"I prefer not to speak too much about Tevez, otherwise his price will go up and this is not good."
Galliani has also revealed that Milan could be tempted to renew their interest in Riccardo Montolivo if the midfielder fails to agree fresh terms at Fiorentina.
"We were keen on him over the summer but we could not find an agreement with Fiorentina," he said.
"If the player does not renew his contract (which will expire in June 2012) and he becomes a free agent, we will look at the situation again and weigh up our options."