The player’s agent revealed negotiations broke down after the Brazilian refused to take a pay cut to join the Partenopei.
Calciomercatonews claim that the Rossoneri could offer the 33-year old an escape route with a return to the San Siro after having played for cross-town rivals Inter earlier in his career.
Milan would need to sell second-choice ‘keeper Marco Amelia, who has attracted the interest of Torino in recent weeks.
Brazil’s first choice goalkeeper would still have to compete with Christian Abbiati for a starting-spot.
A lot depends on whether Milan want to meet the player’s €2.7 million wages or whether he’ll accept a reduction.
Julio Cesar won the Golden Glove for his performances in the 2013 Confederations Cup for Brazil, keeping three clean sheets for the eventual champions.
Follow Louis Gibberd-Thomas on Twitter: @mercutio156