AC Milan will submit an improved offer to Manchester United to take Diogo Dalot back on loan, claims Gianluca Di Marzio.
Dalot spent last season on loan at Milan after dropping completely out of favour under Ole Gunnar Solskjaer.
The Portugal international will drop further down the pecking order at Old Trafford if United succeed in signing Kieran Trippier from Atletico Madrid this summer.
Former United manager Jose Mourinho once hailed Dalot as United's right-back for the next decade and Carlo Ancelotti wants to bring the player to Real Madrid.
However, Madrid are not in a position financially to afford Dalot and the 22-year-old is keen to re-join Milan.
Stefano Pioli's side have already had one offer for Dalot turned down this summer but they plan to return with another bid with an option to buy included.
United are driving a hard bargain over loan fees for their players and they are demanding as much as €5m (£4.3m) for Dalot's services.
Dalot got a surprise call-up for Euro 2020 after Manchester City's Joao Cancelo tested positive for COVID-19 on the eve of the tournament.
Dalot was booked more times (6) than he played a direct hand in goals (5) for club and country last season.
