Milan vice-president Adriano Galliani told Gazzetta dello Sport that they were busy trying to find a resolution to the discussions.
“Everyone must make a great effort: Milan, Real Madrid and Kaká,” he said. “Much depends on [the player’s] economic sacrifice. I have up days and down days. At the moment it is down because I look at the taxation – that kills. In Italy, no player earns more than €5m net.”
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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.