The player has been linked with a move away from Madrid all summer and Milan had previously been linked with their former playmaker.
Gazzetta dello Sport are now reporting that talks took place in Barcelona last night over the move.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.