According to the News Of The World, the club contacted Kaka's father on Friday night and signalled their intent to sign the player.
Real Madrid are willing to match Manchester City's record-breaking €120 million bid, but they will not go anywhere near the estimated €562,000-a-week wages that City are said to be offering.
In their favour, however, is the fact that Kaka appears reluctant to move to a club that does not play at the highest level, a platform that Real Madrid can guarantee.
In addition, a move to the Bernabeu would only materialise in the summer, after their club elections, allowing the Brazilian star to play out the season at Milan.
Arjun Miglani, Goal.com