AC Milan are set to offer Joe Cole £3 million a year in an attempt to trump Arsenal and Tottenham in the race to sign the released midfielder, according to reports.
Unlike Ballack, who has agreed to return to former club Bayer Leverkusen, the England midfielder is yet to commit his future to anyone.
It was previously thought he would prefer to stay in London, as he has a young family, but joining the Rossoneri would represent a different challenge.
The Corriere Dello Sport is reporting England boss Fabio Capello recommended Cole to AC Milan chief Adriano Galliani despite not deeming him good enough to start at the World Cup.
The former West Ham United player, though, has been reportedly demanding wages in excess of £100,000 per week from former club Chelsea and Milan’s offer of £9 million over three years guarantees him weekly earnings of just £60,000.
Cole has recently said he wants to decide on his future as soon as possible now England are out of the World Cup.
He said: “I want to get my future sorted as quickly as possible. It is a big decision for me and my family but I'm open to anything at the moment.
"I have purposely not spoken to anyone while I've been here because that wouldn't be fair on England.
"My phone has been turned off but now I want to sort it all out," he added.