AC Milan coach Carlo Ancelotti has admitted for the first time that Kaka could move to Manchester City.
Milan have given their Brazilian star permission to discuss City's world record transfer bid of £100m.
Ancelotti said: "My hope is to be able to coach Kaka for many more years, but we've got to be aware of the facts and the club's evaluation of the offer.
"The squad is still competitive, even if we were to lose such an important player."
He added: "Our goals? They remain the same for this team with or without Kaka."
Kaka's father and advisor Bosco Leite is due to arrive in Italy on Monday to discuss the potential deal.
"Milan has authorised the negotiation with City," said Kaka's spokesman Diogo Kotscho. "The next step is Kaka's father will talk to Manchester City."
On Thursday, City boss Mark Hughes said the club's big-money offer for the 26-year-old playmaker makes football and business sense.
"The money involved is something we feel, from a football and business point of view, works," said Hughes.
"The process has moved forward at a pace this week but people shouldn't be thinking that it is just a whim."
The sheer size of the figures involved in the proposed deal have made headlines around the world, but Hughes said it was all part of a considered plan from the club's hierarchy.
"It's been done with structure and understanding," he said.
"We're all very much involved in that process; myself from a football point of view and (chief executive) Garry Cook and (chairman) Khaldoon Al Mubarak from a club and business point of view.
"It would be naive to think I have not been involved in discussions over this transfer. I have had meetings about it and have had an input."
Kotscho insists any move would be done for the right reasons and not just for the reported £500,000-a-week wages.
"It is not impossible, if Milan let us talk, then we will see what City have to offer," Kotscho told BBC Radio 5 Live.
"Kaka knows about the offer but the club did not give authorisation for talks, so we did not meet. It was a great proposal but it's not about only money.
"We have to see if they have a project to become a Champions League team and become one of the top teams in the world, and to stay there long term."
David Bernstein, who was chairman at the club between 1998-2003, called Kaka's signing "potentially the most extraordinary thing I've experienced with Manchester City", while admitting he was worried by the figures involved.
"There has to be a condition that there will be other major signings," Bernstein told BBC Radio 5 Live.
"I've done some quick sums and the total Kaka transfer fees and agent's fees and salary over four years comes to about a quarter of a billion pounds. And they could easily do another £150m on four or five other world-class players.
"City's total income now is something like £80m so they'll be paying a third of their total income in salary to one player."
AC Milan confirmed that their chief executive Adriano Galliani had met officials from City on Tuesday to discuss Kaka's future.
The current record for a player's signature is £46m when France's Zinedine Zidane moved from Juventus to Real Madrid in 2001.
Kaka joined Serie A giants Milan from Sao Paulo in 2003 and has since won the Italian league title, Champions League and Club World Cup.
The attacking midfielder has scored 86 goals in 244 appearances for Milan. He has also picked up 62 caps for Brazil and scored 23 goals.
Sheikh Mansour bin Zayed Al Nahyan, estimated to be worth £15bn, took over as City owner in September 2008 and extensive funds have been made available to Hughes.
However, he has only secured the services of Wayne Bridge in January's transfer window, with bids rejected for West Ham forward Craig Bellamy and Blackburn striker Roque Santa Cruz.
Source:
http://news.bbc.co.uk