Is the lure of money too much for AC Milan to turn down? [AFP]

City's offer for the Brazil playmaker is reportedly more than $191.6 million.

"I think there are dealings under way and therefore it's something the club is going to have to do together with the player," Ancelotti said at his weekly news conference at Milan's training facility.

"My hope is to be able to coach Kaka for many more years, but we've got to be aware of the facts and the club's evaluation of the offer presented," Ancelotti said.

The coach said the club would be able to go forward without the 26-year-old former world player of the year.

'With or without Kaka'

"Our goals? They remain the same for this team with or without Kaka," Ancelotti said.

"We want to get back in the Champions League and win the Uefa Cup.

"The squad is still competitive even if we were to lose such an important player."

Kaka arrived at the Milanello training centre in a minivan with assistant coach Mauro Tassotti.

He did not stop to speak with reporters, only offering a brief wave.

Kaka said on Wednesday he wants to "grow old" at Milan, but his spokesman, Diogo Kotscho, said that the player will listen to City's proposals.

According to reports, the entire offer could top $196 million.

Man City manager Mark Hughes, seen here with his other megabucks signing Robinho is confident the deal is still on the table [EPA]

Kaka's father and chief adviser, Bosco Leite, is expected to travel to Europe for talks on the offer.

If the transfer goes through, it would smash the world record set in 2001 when Real Madrid signed Zinedine Zidane from Juventus for $65 million.

Italian media have already begun speculating over the players Milan could
bring in to replace Kaka if the deal goes through, but Ancelotti said that's premature.

"We've never confronted the (possibility)," Ancelotti said.

"These are choices for the club... but it's premature to talk about it.

"The club hasn't decided yet, and then there's the problem of seeing what the player wants to do."

Possible options

One possible option would be to bring back Yoann Gourcuff from Bordeaux, where the French player has excelled on loan this season.

But Ancelotti rejected the idea.

"Gourcuff is slower and less dynamic," the coach said.

"He has different characteristics.

"Kaka has got such good technical skills. He's a unique player."

Kaka helped Milan win the Champions League in 2007.

The club is currently third in Serie A.

Manchester City, meanwhile, is 15th in the Premier League, just two points above the relegation zone, and without a major trophy since 1976.

Manchester City is owned by the cash-rich Abu Dhabi United Group, headed by Sheik Mansour bin Zayed Al Nahyan.

The club broke the British transfer record to sign Robinho in September for $48.5 million.

"This is football now," Ancelotti said.

"Big investors have come in and it has become normal and fair to make evaluations of this kind."