AC Milan are struggling to keep hold of star midfielder Kaka as reports emerged that Real Madrid had agreed a world record £56m transfer for the Brazilian.
The 27-year-old has also been linked with Chelsea but he is the prime target of new Real president Florentino Perez.
Milan owner and Italian Prime Minister Silvio Berlusconi said: "I don't know if we'll be able to keep Kaka because they have offered him so much money."
It is claimed Kaka's father and agent Bosco Leite sealed the deal in Madrid.
Chelsea, whose new manager is former Milan coach Carlo Ancelotti, have also reportedly shown their interest in the 2007 world player of the year.
As well as Kaka's father, AC Milan vice-president Adriano Galliani was also in Madrid, although the Italian club insisted that was because he had been invited to a dinner for the election of Perez as Real's new president.
"AC Milan and Real reckon they have the basis for a deal," Spanish football expert Sid Lowe told BBC Radio 5 Live. "But there are things in the way, like the commission to be paid to Kaka's father, and with the European elections coming up on Thursday, Berlusconi will not want to lose him just now."
Earlier this year, Kaka rejected a £100m transfer and a reported wage offer of £500,000-a-week to go to Manchester City and in an interview on Tuesday the Brazilian told Gazzetta dello Sport he wanted to stay with the Serie A club.
In January, Berlusconi admitted the scale of City's offer made it difficult for Milan to keep hold of the Brazilian.
Returning Real president Perez was previously in charge of the Spanish club from 2000 to 2006, during the famous Galacticos era that resulted in the spending of large fees to bring the likes of Ronaldo, David Beckham, Luis Figo and Zinedine Zidane - for a world record £47m - to the club.
Perez's comeback is on the back of a pledge to relaunch another Galacticos era, with Kaka known to be one of his chief targets.
When Ancelotti was confirmed as the new Chelsea manager on Monday he was immediately linked with Kaka as part of reported ambitious spending plans of his own, which are also thought to include Kaka's Milan team-mate Alexandre Pato.
The 49-year-old Italian, who officially takes over at Stamford Bridge on 1 July, hinted at a potential move, and stated: "There is one player I would like to sign but I cannot take him with me."
Kaka, who joined Milan from Sao Paolo in September 2003, has reportedly signed a five-year deal with Real for a salary worth £7m a year.
Galliani reiterated recently that Milan might find it difficult to turn down offers for their prize Brazilian assets.
"We have had requests for Kaka and Pato from two of Europe's biggest clubs and we will try and resist but there is an uneven playing field," he stated.
BBC Sport
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