The Spanish forward has been chased by a host of clubs this summer, with Manchester United almost bringing him to Old Trafford until they got a sniff of the possibility of signing Romelu Lukaku.
That shock deal caused Chelsea to hurriedly search for a new frontman, having previously made Lukaku their No.1 target, and put Morata right at the top of their wish list.
But La Gazzetta dello Sport are reporting that, in the last few hours, AC Milan have intensified negotiations for the striker and are ‘a step away’ from completing a deal.
According to the report, Morata – previously wary of returning to Italy with a club other than Juventus – has been convinced to move to San Siro by the club’s ambitious project.
Milan have made a host of signings this summer, including the Spaniard’s old Juve teammate Leonardo Bonucci, who swapped Turin for Milan last week and will wear the armband.
The commanding Italian centre-back has also been joined by the likes of Hakan Calahanoglu, Andre Silva, Franck Kessie and Mateo Musacchio during a massive summer spending spree.
Alvaro Morata’s La Liga season
And it could be about to get even bigger, with Real willing to listen to Milan’s opening offer of €70 million, even though it falls short of their rumoured asking price of €90m.
That figure represents the price Juventus paid to sign Gonzalo Higuain from Napoli, which Real have frequently used as a benchmark in negotiations.
Morata’s potential return to Italy with Milan marks a major U-turn from his stance after the Champions League final, when he appeared to rule out the possibility of returning to a country where he spent two years.
‘Back in Italy? It’s difficult. Certainly not. I want to stay at Real Madrid,’ he told reporters in June. ‘I like Italy, but Madrid is my city and this is my team, and Juve is my second team.’