De Jong has flown to Italy for talks with the Rossoneri over a permanent deal.
The official Milan TV channel announced on Thursday: “De Jong is on his way to Milan. The medical will be performed tomorrow.”
The 27-year-old has fallen down the pecking order at City and has been linked with a move away from the club in recent months.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.