AC Milan have reached an agreement with Sinisa Mihajlovic to be their new manager according to reports in Di Marzio and are chasing the signature of PSG forward Zlatan Ibrahimovic who is touted to leave in the summer transfer window.

Current AC Milan manager Filippo Inzaghi has a contract until June 2016, but the club made it perfectly clear it is looking for a replacement. Sinisa Mihajlovic was in a meeting with AC Milan President Silvio Berlusconi on Wednesday night following Ancelotti’s decision to take a sabbatical and an official confirmation of the appointment is expected by Friday. The 46-year-old Serbian left Sampdoria on Monday.

Ibrahimovic’s potential return to AC Milan was discussed in the meeting. Mihajlovic worked with Ibrahimovic when the pair were at Inter Milan as players. Berlusconi has made no secrets of his desire to bring back the Swedish striker to AC Milan: a Ia m fixated on his return, although ita s a very difficult thing to make happen, and it will take patience. But hea s magnificent on the pitch.a

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Milan CEO Galliani is expected to meet with Ibrahimovica s agent, Mino Raiola, either tomorrow or Saturday, to see if therea s any possibility of a deal. French magazine France Football claimed earlier this week that the 33-year-old will leave PSG.

Ibrahimovic currently takes home a 15m a year and has a year to run to his contract with PSG. The figure could prove to be the main stumbling block and Ibrahimovic will have to take a significant pay cut to return to AC Milan where he has played betweem 2010 and 2012 prior to the move to the French capital.

AC Milan finished a disappointing 10th in the Italian Serie A table and are going all out to secure the Serie A title next season amidst reported takeover deal that has Chinese investors taking an initial 30% stake which will rise to 51% should Milan win the league.