He is expected to pass the medical before completing his year-long loan deal at his former club.
Balotelli, 25, was free to leave Liverpool this summer after manager Brendan Rodgers brought in forward replacements.
AP
Balotelli arrived early for his Milan medical
Last year's £16million signing from Milan will rejoin his former team-mates and could play against Empoli this weekend.
Liverpool have agreed to pay half of his £80,000-a-week wages, while there is no clause in the deal that stipulates Milan can make the move permanent next summer.
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