Manchester City are looking for a replacement for Kyle Walker, who looks set to leave the club this month.
Mail Sport exclusively revealed that Pep Guardiola had left the 32-year-old at home ahead of the 2-2 draw against Brentford after the defender asked to leave the club.
Both Milan clubs are vying for his services and Mail Sport understands that any loan deal could end in a permanent two-year deal when concluded.
The impending departure of a first-team regular has made a replacement necessary, with City closing in on Juventus full-back Andrea Cambiaso, according to Sky Italia.
The 24-year-old, who has scored 13 goals for Italy, has been a mainstay in Thiago Motta's side this season. His only absence from the lineup was due to an ankle injury ahead of a December draw against Venezia.
Cambiaso mainly played as a left back for the Oude Dame, although he is also capable of playing on the right side of defense, as well as in more attacking positions on that flank.
The report from Italy claims that City are preparing a bid of between £50 and £55 million for the defender.
Should City get the deal done, he would be another signing at Etihad in the January transfer window as the club look to salvage their disappointing season.
On Tuesday, City reached a £29.4 million deal with Palmeiras to sign centre-back Vitor Reis.
The Brazilian defender will immediately join Pep Guardiola's squad instead of remaining in Brazil for the Club World Cup.
The signing of the 19-year-old, who can also play as a right-back, is a further boost in Walker's quest to leave the club.
In addition, City is also working this week to finalize the transfer fee for Frankfurt striker Omar Marmoush and will sign Lens defender Abdukodir Khusanov.
Khusanov, the 20-year-old Uzbekistan international, missed Sunday's win at Le Havre as City were finalizing the transfer.
The centre-back, who has signed a four-and-a-half-year contract, must undergo a medical and obtain a work permit before being officially confirmed as Guardiola's first new signing in a busy January window.
Mail Sport reported last month that the Premier League champions were hoping to bring in three or four new recruits across all levels of a squad struggling with an ongoing injury crisis.
Marmoush had become a target in forward areas and the 25-year-old can operate anywhere in the front three or as a foil for top scorer Erling Haaland.