The England international joined the Serie A giants on loan in the January transfer window, with a £4.3million option-to-buy clause included in the deal.
Italian newspaper Gazzetta reported on 14 April Walker is likely to return to Man City once his loan deal comes to an end.
The 34-year-old, who has made 12 appearances for AC Milan, is set for a spell on the sidelines after breaking his arm in training earlier this month.
Former Man City financial adviser Stefan Borson exclusively told Football Insider Walker is likely to take a pay cut if he returns to the Etihad this summer.
The right-back is under contract with Pep Guardiola’s side until June 2026 after spending the past eight years with the club.
Borson insisted Man City will be able to move Walker on this summer even if a permanent deal doesn’t work out at AC Milan.
He told Football Insider: “I think some of the stories that I heard were that he’d agreed to effectively reduce his salary if he came back.
“So, City might be thinking it makes no difference either way and they will still find a home for him next season.
They will definitely be able to find a club that will take Kyle Walker.
“The only question will be in respect to the wages. He’s currently on let’s say £250,000 a week.
“Now, if he’s taking a pay cut to facilitate that move to AC Milan and they said that he will take a pay cut in that final year of his salary or he will move somewhere else for a custom salary, then I’m sure they can move him on.
“City’s big loss maybe ends up only being the €5million (£4.3million) that they would get if he went to AC Milan.
I think either way it’s not going to move the dial very materially, and I think it’d be very surprising if he restarts at £15million next season.”
Football Insider revealed on 19 April Florian Wirtz is the “number-one target” to replace Kevin De Bruyne ahead of the summer transfer window.
Man City have identified potential De Bruyne replacements, with Morgan Gibbs-White and Jamal Musiala on the list alongside Wirtz.
Guardiola views Wirtz as the dream signing, but sources say Bayern Munich are the current front-runners and a deal could prove difficult for Etihad chiefs to pull off.
