AC Milan says it has reached an agreement with Manchester City to sign Mario Balotelli.

The Italy striker will undergo a medical on Wednesday and is then expected to sign a 4-year deal with Milan through 2017.

Club director Umberto Gandini tells The Associated Press "an agreement has been reached with Manchester City, Balotelli will have a medical tomorrow and then sign...if he doesn't pass the medical, it won't happen.''

The move brings an end to a turbulent 2 years in England for Balotelli.

Reports say Milan paid 20 million pounds ($NZ37.6 million) plus bonuses for Balotelli, who will be taking a pay cut to move to the club he has supported since childhood.

Balotelli progressed through the ranks at Inter Milan before joining City in 2010.

- AP