AC Milan refusing to pay loan fee to sign Gerard Deulofeu from Everton

AC Milan remain in talks to sign Gerard Deulofeu on loan, despite telling Everton they will not pay a fee

AC Milan are refusing to pay a fee to sign Gerard Deulofeu on loan, but remain in talks with Everton, according to Sky sources.

Sky Sports News HQ reported on Tuesday that Milan had approached Everton about the possibility of taking the Spanish winger on loan for the remainder of the campaign.

Everton manager Ronald Koeman has agreed to let Deulofeu leave Goodison Park on a temporary basis, but Milan's refusal to pay a fee could scupper a potential deal.

Deulofeu first-team opportunities under Ronald Koeman have been limited

Sky sources understand Milan are currently maintaining their stance and it will take a U-turn from the Italians for the move to go through.

Deulofeu joined Everton from Barcelona in the summer of 2015 on a permanent basis having spent a successful loan spell with the Toffees during the 2013-14 season.

Barcelona have the option of a buy-back clause as part of the deal that took the 22-year-old to Merseyside, but that will not prevent any potential move to the San Siro.

Koeman has given Deulofeu permission to leave Everton this month

Deulofeu has expressed a desire to move to Milan, having found his playing time limited since the arrival of Koeman last summer.

He has made 13 appearances this season and has been left out of recent matchday squads.