Il Giorno says Real have so far offered £55million but are prepared to go up to £70million, should they need to.
Negotiations between AC Milan owner Silvio Berlusconi and Real Madrid presidential candidate Florentino Perez has been held.
“Kaka is our primary objective, we are at a good stage in negotiations because everyone involved is eager to close the deal,” Perez colleague Jorge Valdano was quoted as telling Il Giorno.
