A loan deal could see the Argentine striker head to San Siro once the transfer window opens in January as the Italians spark contact with his representative.
Sky Sport Italia claims Milan CEO Adriano Galliani and transfer director Ariedo Braida spoke at length with Kia Joorabchian in a meeting at the club's head office in Milan on Thursday afternoon.
A loan deal has been proposed by the Italian giant which is keen on landing Tevez in January as a temporary replacement for Antonio Cassano, who is currently recovering from heart surgery.
It will reportedly cost Milan around 5 million euros to take the striker on loan, and then a further 20 million euros if the club wants to keep him in June.
Tevez is earning around 8 million euros plus bonuses per year at City - a figure too high for the Italians who are not eager to pay that amount.
Tevez will also be ineligible to play for Milan in the Champions League, having featured against Napoli in the competition in matchday one.
On Monday, Manchester City manager Roberto Mancini warned interested clubs that they would have to pay a high price to land the striker.
Tevez was recently fined by the Premier League side after he refused to come off the bench during a Champions League match against Bayern Munich on Sept. 27.
Since then, his career at City has been thrown into serious doubt, and his recent trip back to Argentina has cast a further shadow on his relationship with Mancini.
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