Diarra has long been sought after by Milan.
The 27-year-old defensive midfielder has been a target of Milan for several years, and after appearing in only 17 league games this year, he is believed to be ready to make the move.
Per Diarra's agent Ernesto Bronzetti, who works closely with Real Madrid and has a good relationship with Milan CEO Adriano Galliani, his client is currently on vacation in the United States and will finalize the move upon his return .
“Diarra is on holiday in America right now,” Bronzetti told Marca. “However, as soon as he is back, he’ll find an agreement with Milan.”
The Frenchman is under contract at Real Madrid until 2013. No talks appear to have taken place between Milan and Diarra's employer for his services, but Football-Italia recently reported that Diarra was offered as part of a package, along with midfielder Nuri Sahin, in exchange for Kevin-Prince Boateng. But the offer was rejected by Galliani, who has no intention of giving up the Ghanaian.