Milan have confirmed on their club TV station that 'high level talks' have taken place and hope to reach a swift conclusion.

Torres is on a two-year loan from Chelsea but has failed to impress and Atletico are convinced they can rekindle the player of old on his return to Spain. They will take over Milan's loan arrangement with Chelsea and sign Torres for an initial 18 months. 

Cerci, who joined Atletico for £13m in the summer from Torino, will go to Milan. Sportsmail reported last week that the deal had been discussed but there has been interest from other Italian clubs in Cerci notably from Inter Milan. 

He has yet to agree to the move despite it being provisionally agreed between the clubs while Torres is on holiday in the Maldives but has already given the proposal his blessing.

Inter are pursuing loan deals for Arsenal's Lukas Podolski and Manchester United's Adnan Januzaj should they miss out to their city neighbours on Cerci. 

(dailymail.co.uk)