The club's TV station, Milan Channel, has revealed that the two clubs are discussing the possibility of a loan move, reports Xinhua.
Adriano Galliani, Milan's vice president, admitted the talks with Real Madrid to take Kaka on loan will be very difficult.
"Will it be possible to sign Kaka? It will be difficult, very difficult," he said.
There was speculation over Kaka's return to Milan, where he spent six of his best years and helped them win Serie A and Champions League titles.
Milan failed in their attempt to get him back in the summer and Galliani said Wednesday that the club could not afford his pay package.
Kaka, however, was quoted as saying he was ready to take a pay cut and move to Milan.
"It's true, I was very, very pleased with Kaka's words. There is contact with Real Madrid," Galliani said.
