ESPNsoccernet: Europe

Milan have reportedly identified Sao Paulo midfield star Hernanes as their next summer signing.

The midfielder is viewed as the right man to fill the boots of Italy international Andrea Pirlo, who could leave the club to reunite with Carlo Ancelotti at Chelsea.

But Joao Paulo de Jesus Lopes, the technical director of the Brazilian team, mocked the Rossoneri's financial muscle last month, claiming that Hernanes would only be released for a fee in excess of €40million.

Press reports, however, have suggested that Sao Paulo could settle for €25m, but the player's agent Frederico Pena is adamant there is room to negotiate a much lower price.

"At the moment, Hernanes' valuation is not at €25m anymore, but I think that an agreement could be struck at €12-13m," the representative is quoted as saying at ilcalciomercato.it.

"But the real problem for Milan is the player's non-EU status. I know Leonardo is keen on him, but the Rossoneri first need to free up a slot for non-EU players."