The Spaniard impressed during a temporary spell at San Siro last term, and will be heading back ahead of the 2021-22 campaign
Real Madrid forward Brahim Diaz is set to sign for AC Milan on a two-year loan deal, Goal can confirm.
Diaz joined Real from Manchester City for €17 million (£15m/$20m) in January 2019, bringing to an end his three-year spell at Etihad Stadium.
The Spaniard has struggled to break into the Blancos' starting XI, however, with the Spanish giants eventually taking the decision to send him out on loan to Milan, where he enjoyed an impressive 2020-21 campaign.
How have Milan re-signed Diaz?
Diaz has returned to Real to take part in their latest pre-season preparations, and the 21-year-old is still tied to Santiago Bernabeu through to 2025.
However, he will soon be heading back to San Siro, as Goal has learned that Milan have reached an agreement to sign him on loan for another two years.
The Rossoneri are going to cover Diaz's full salary through to the end of 2022-23, but no option to buy will be included in the final deal.
The Spain international still harbours ambitions to make the grade at Real, who have no desire to sell.
When will the move be announced?
Milan are currently putting the final touches on their negotiations with Real, and it is expected that Diaz will be officially unveiled at San Siro for a second successive year by the end of the week.
The terms of the loan could end up costing the Rossoneri a grand total of €3 million, but the Blancos loanee is eager to return to Milan and head coach Stefano Pioli is planning to hand him a central role.
Diaz's record for Milan last term
Diaz racked up 39 appearances across all competitions for Milan last season, recording seven goals.
The former City forward's performances helped Pioli's side finish second in Serie A and reach the latter stages of the Europa League, and they will be expected to challenge on multiple trophy fronts again in the upcoming campaign.