AC Milan moved a step closer to a takeover after the struggling Serie A giants announced the start of "exclusive negotiating rights" with Chinese investors yesterday.

Club owner Silvio Berlusconi said last week he was open to selling a majority stake in the fallen seven-time European champions, with a preference to keep the club "in Italian hands".

But following the recent collapse of talks with Thai businessman Bee Taechaubol, a statement by Milan on their official website suggested Berlusconi's holding company Fininvest is now ready to begin serious negotiations with a Chinese consortium.

"Fininvest has reached an agreement with a group of Chinese investors in establishing exclusive negotiating rights for the sale of shares of AC Milan," said the statement.