The 21-year-old attacking midfielder, who has been attracting a fair amount of interest, predominantly played out wide on the left last season though he is capable of playing on the right and centrally, too.
According to German publication Kicker, the Rossoneri are vying with Sampdoria for the €20 million-rated man and are willing to include former Wolfsburg full-back Ricardo Rodriguez as part of the deal to bring him to the club.
However, it is rumoured that the German side would only be interested in a cash deal which may have complications for Milan given their need to pander to Financial Fair Play restrictions.
Brekalo made 25 appearances in the league last season and he also played three times for the Croatian Under-21 side where he managed to bag two goals.
The Croatian started out at Dinamo Zagreb before moving to the Bundesliga in 2016.