By Italy correspondent Gianluigi Carrozzini

Mario Balotelli is closing in on a return to AC Milan following talks between the two parties over the last 24 hours, Football Insider sources understand.

The Liverpool striker held talks with Milan manager Sinisa Mihajlovic on Saturday night and is close to reaching an agreement to join the club on a season-long loan.

The Premier League club are not expected to receive a loan fee for the 25-year-old but Milan are willing to pay his £110,000-a-week Liverpool wages.

Brendan Rodgers has made it clear that there is no place for Balotelli in the Merseysiders’ first-team squad this season and he will be allowed to leave if the right offer arrives.

Balotelli, who is also being monitored by Sampdoria, Fiorentina and Lazio, spent a year at hometown club Milan before his £16million move to Liverpool in the summer of 2014.

The English club’s £15million valuation of the Italy international has put off clubs in his homeland from a permanent deal but a loan move could now come to fruition in the coming days.

As reported by Football Insider, the Merseysiders will listen to offers for Balotelli this summer as well as his Italian team-mate Fabio Borini.

Balotelli had a disastrous season for Liverpool after signing from Milan. He has scored just four goals in 28 appearances, only one of which has been in the Premier League.