The 23-year-old defender will enter the final year of his contract at Fiorentina this summer and it seems he is set to leave the club.
Milenkovic wants to move to a bigger club and has decided against signing a new contract with the Serie A giants.
Fiorentina were looking for a fee of around €40m last year when they received enquiries for the Serbian defender, but that figure has come down significantly.
According to Italian daily Gazzetta dello Sport, Fiorentina are now prepared to let the defender leave the club for a fee of around €25m, a significant price cut.
With only a year left on his contract, the Italian club do not want to risk losing the player on a free transfer next summer.
Tottenham are believed to be keen on him but Manchester United are claimed to be in pole position to sign him.
They have been in contact with his entourage and his name is very much part of the Red Devils’ shortlist of targets.
Milenkovic also has suitors in Italy AC Milan and Inter interested in signing him.
With his price having dropped substantially, a scramble for his signature could break out.