AC Milan have beaten Manchester City in the race to sign Barcelona playmaker Ronaldinho after revealing they have reached an agreement in principle on a three-year deal for the Brazilian.

The Serie A club made the announcement on their official website following a day of talks between Barca president Joan Laporta and Milan vice-president Adriano Galliani in the Catalan capital.

The financial terms of the agreement have not been revealed but City´s interest almost certainly pushed up the final fee.

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