Gazzetta dello Sport report that the two teams are meeting to thrash out a transfer fee for the player.
Higuain has struggled to establish himself as a regular in the Real Madrid side this season.
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The reputation of the Premier League means it is the most popular and one of the most watched leagues in the world.
Five English clubs will compete in the last sixteen of the Champions League for the first time ever as Liverpool, Manchester United, Manchester City, Chelsea and Tottenham face some difficult away matches.