According to a report from calciomercato, Milan are currently observing Ilicic's situation at Atalanta, who has been linked with the Rossoneri for a few weeks now, with his relationship with Gian Piero Gasperini not being ideal.
Milan are keen to add to their current squad in order to prepare for European football next season, especially if they play in the UEFA Champions League, and Ilicic would be a signing that offers plenty of experience.
Milan Sporting director Ricky Massara reportedly wants this move to end up just like Alejandro Gomez ended up joining Sevilla during the summer after a distorted relationship with Gasperini, leading to Sevilla snapping him up for a relatively low fee of around €5.5 million.
However, the report adds that Atalanta do not want to sell the 33-year-old, who has scored six goals and provided nine assists in Serie A this season.
Despite this, most of the decision depends on Ilicic, who might be eager to join another club before it's too late given his age.
His contract at Atalanta ends in 2022, and so far there has not been any progress with regards to a contract extension.