The 25-year-old has been frozen out of Brendan Rodgers’s plans this season and forced to train away from the first-team squad along with Fabio Borini and José Enrique after a disappointing first season at Anfield and having joined from Milan in a £16m transfer last August.
Balotelli is due a six-figure “loyalty bonus” from Liverpool should he remain at the club once the summer transfer window has closed but he has agreed terms with the Italian club over a loan deal. He is set for a medical at the club’s Milanello training ground on Tuesday.
It is understood that there is no loan fee and that Milan will pay half of his £80,000 a week wages, with Liverpool picking up the remainder.
Balotelli made 16 Premier League appearances for Liverpool last season, scoring just once, against Tottenham in February.
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