Berlusconi's family holding company Fininvest revealed on Tuesday that is in exclusive talks with a consortium of Chinese investors over the acquisition of Italian Serie A soccer club AC Milan.

A memorandum has allegedly been signed between the Chinese group and the Italian company at a board meeting on Tuesday to "kick off in-depth negotiations," Reuters reported.

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"Fininvest has reached an agreement with a group of Chinese investors for a period of exclusivity to discuss the sale of a stake in Milan AC," a statement from the Italian company owned by former Italian Prime Minister Silvio Berlusconi said.

According to an insider, Fininvest is pricing the said club at around 700 million euros (5.2 billion yuan or $797.5 million), including debts.

The source revealed that discussions are non-bidding, and exclusivity will last for a month. During that period, either company can cut off the negotiations without facing any penalties, China Daily reported.

Baidu CEO Li Yanhong has been linked to the negotiations. However, the Chinese search engine giant refused to comment.

Meanwhile, last month, Alibaba founder Jack Ma laughed off rumors that he is planning to buy the Italian football club. A representative of Ma brushed off reports saying neither Alibaba nor its chief was involved in any meetings.

Berlusconi's family is attempting to sell its three-decade-old club at one of its lowest points, with incurred debts amounting to about 694 million yuan ($106.7 million) in 2015.

However, the former Italian prime minister has said he would not allegedly hesitate to sell the club as long as he finds the rightful buyer, although he told Reuters earlier this week he prefers an Italian buyer. "To those who tell me a sale is necessary, I say that I've been trying to do that for a year, but I'd like to leave Milan in good hands...preferably Italian ones," he told said.

TagsFininvest, AC Milan, Serie A soccer club, Silvio Berlusconi