An unidentified Chinese firm is rumored to be in talks with Italian Serie A squad AC Milan for it to buy an 80 percent stake in the club with the remaining 20 percent set to be purchased within two or three years from now.

The Star Online reported that the agreement is close to being finalized even though the name of the Chinese conglomerate is still not being revealed as of the moment. The report also cited local newspaper China Daily saying that the "two parties are discussing the 80 percent takeover by the Chinese investors and the negotiations are still continuing".

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Italy's former prime minister Silvio Berlusconi, AC Milan's current owner thru his company Fininvest, is said to be in talks with the team from China since May "to try to inject new capital into" I Rossoneri as the club is failing financially after consecutive unsuccessful seasons both in domestic and international competitions.

Initial negotiations led to the parties deciding on a 70 percent stake for the Chinese group with Milan valued at €700 to €750 million including €200 million in debt.

However, the deal has now escalated into an 80 percent takeover and a full buyout by the year 2018 or 2019.

AC Milan's representatives are said to be "confident that the final agreement is likely to be reached in the first week of July, although some important legal and financial details are still to be agreed upon", as per China.org.

Berlusconi will be the final decision-maker on the said deal and will also be the one to announce it publicly when it is formally completed.

The report noted that the agreement should have been finished on June 20, but Milan officials requested for it to be postponed until the first week of July because Berlusconi was scheduled to have a heart operation in the end of June.

"Chinese investors understand Berlusconi is still in hospital and are willing to extend the negotiations beyond the proposed date, but I am positive that the deal is likely to be reached early next week, without any sudden changes," a source close to the negotiations said.

Last Tuesday, the Suning Holdings Group, owners of the Chinese Super League's Jiangsu Suning football club, bought a 68.55 percent stake of Inter Milan in another high-profile takeover of Chinese ownership in Italy.

TagsChina Football, China football 2016, China Football News, AC Milan, AC Milan rumors