MILAN, Italy - AC Milan announced on Tuesday that it has reached an agreement with Manchester City to sign Italy striker Mario Balotelli from the English champions.

However, City declined to comment on reports that a deal had been struck for the 22-year-old forward, who joined the Premier League club from Milan's city rival Inter in 2010.

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

Italian media reported that Balotelli would sign a 4 1/2-year deal with Milan through 2017, bringing an end to a turbulent 2 1/2 years in English football.

Reports said Milan will pay (euro)20 million ($27 million) plus bonuses for Balotelli, who will be taking a pay cut to move to the club he has supported since childhood.

Just three days ago, Milan vice-president Adriano Galliani said City was sticking firm to its asking price of (euro)37 million ($50 million) for Balotelli.