The Rossoneri want to land a full-back before the transfer window closes and have told Manchester United they would like Dalot on loan.
The Italian giants also want to include an option in the agreement which would let them sign Dalot on a permanent basis if he impressed at the San Siro.
Manchester United are willing to let the Portuguese go, but want to sell him outright.
As a result there is no agreement in place between AC Milan and Manchester United for Dalot yet.
The 21-year-old clocked just 65 minutes of Premier League football under Ole Gunnar Solskjaer last season and could be tempted by the prospect of playing for AC Milan.
Dalot was an unused substitute in Manchester United’s EFL Cup tie against Luton Town earlier this month.
He still has a further three years left to run on his contract at Old Trafford.