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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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.