Chelsea striker Hernan Crespo will spend another season on loan with Milan, according to his agent.
Crespo enjoyed a productive year with Milan, scoring twice in the Champions League final defeat to Liverpool, after an unhappy 12 months with Chelsea.
It was thought Milan would buy him but they have reached agreement with Chelsea to retain him for another season.
“The clubs have reached an agreement,” said Fernando Hidalgo after a meeting with Milan vice-president Adriano Galliani and Chelsea’s Peter Kenyon.
“We are talking about another season on loan. This time Milan will pay his wages and he has accepted a substantial salary cut.
“Crespo’s wish to remain with Milan proved decisive. Next week we will resolve everything.”
Hidalgo was due to attend another meeting later on Wednesday with Inter Milan to discuss the future of Juan Sebastian Veron, who is also on loan from Chelsea.
“Our goal is to confirm the 11 starters from Istanbul for next season,” Galliani had said last week, referring to Milan’s starting team in the Champions League final.
“I’m confident for the confirmation of Crespo because we have always had great relations with Chelsea,” added Galliani.