The Rossoneri want to revamp their forward structure and so far the likes of Robinho and Kevin-Prince Boateng could make way for CSKA Moscow's Keisuke Honda and also Ljajic.
Ljajic enjoyed a terrific season at the Viola and with 11 goals and 6 assists in Serie A, he helped the side to finish in 4th place which was just points short of a Champions League birth.
Milan are to make an offer of around €10million but it is believed that Fiorentina want double that amount before they consider the sale of the 21-year old.